Grayscale to split Zcash ETF 3-for-1, tripling ZCSH share count

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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 Grayscale’s Zcash ETF share split means for holders

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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