Grayscale’s Zcash ETF holders to get triple their ZCSH holdings after 3:1 share split approval
- Grayscale is splitting its Zcash ETF (ZCSH) 3-for-1, giving holders three shares for every one they own as of the September 28 record date.
- The total value of any stake remains unchanged.
- ZEC has rallied toward $1,500 from about $42 a year ago.
Grayscale said on September 18 that it plans a 3-for-1 forward split of its Zcash ETF (ZCSH).
ZCSH is the first U.S. fund tracking a privacy coin. The move will triple each holder’s share count without changing what their stake is worth.
What does Grayscale’s share split mean for its shareholders?
Grayscale has said that it is planning on splitting its Zcash ETF (ZCSH) in a way that anyone holding ZCSH at the close on September 28 receives two additional shares for each one they already own.
The shares are to be distributed after the market closes on September 29. Post-split trading is set to begin before the opening bell on September 30, the effective date.
Cryptopolitan reported that Grayscale converted its long-running Zcash Trust into an ETF under the ticker ZCSH and listed it on NYSE Arca on August 25. Coinbase Custody holds the coins, and the fund carries a 2.5% annual fee, roughly ten times what a spot Bitcoin ETF charges.
Grayscale said on September 8 that its assets passed $500 million following the debut, up from the $260 million or so the fund listed with.
In a September 17 Medium analysis of the fund, Austin Liu said that much of the total was money already sitting in the trust before conversion, with roughly $70 million in fresh outside inflows and a $100 million allocation from DCG International Investments, a unit of Grayscale parent Digital Currency Group.
By early September, the fund held more than 550,000 ZEC, close to 3% of the coin’s total supply.
How does ZCSH work?
Zcash lets users choose between transparent addresses that are similar to Bitcoin and shielded addresses that hide the sender, receiver, and amount involved in the transaction.
However, Liu wrote in his Medium post that the fund only holds coins in transparent Coinbase wallets, so every single one can be checked on the public blockchain.
Cryptopolitan reported that ZEC was trading near $50 a year ago, and crossed $1,000 on September 4.
A separate Cryptopolitan report says the coin is now near $1,500 after a roughly 20% increase on Thursday.
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FAQs
When does the ZCSH 3-for-1 split take effect?
Holders of record as of the close on September 28 receive two additional shares per share, distributed after market close on September 29, and post-split trading begins before the open on September 30, according to Grayscale.
Does the split make ZCSH holders richer?
No. A forward split triples the share count while cutting the per-share NAV to about a third, so a stake worth $3,000 before the split is still worth $3,000 after, as Grayscale's own illustration shows.
What is ZCSH and how large is it?
ZCSH is Grayscale's Zcash ETF, converted from its Zcash Trust and listed on NYSE Arca on August 25 as the first US spot privacy-coin ETF; it passed $500 million in assets by September 8 and charges a 2.5% annual fee.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
