Grayscale Files 3-for-1 Split for Zcash (ZEC) ETF After $233M Inflows

Grayscale Files 3-for-1 Split for ZCSH

Grayscale has filed to split shares of its Zcash ETF three-for-one, according to a document lodged with the SEC on Friday. Shareholders of record at the Sept. 28 close will receive two extra shares for every one they hold, with distribution after the close on Sept. 29 and split-adjusted trading resuming at the open on Sept. 30 under the same ZCSH ticker and CUSIP. A forward split leaves a holder's total value unchanged; the aim is retail access, because brokers do not offer fractional ETF shares the way crypto venues do. The trigger is price: Zcash (ZEC) privacy design relies on zk-SNARK proofs for optional shielded transfers, and the coin has climbed more than 2,800% over the past year, pushing the fund's per-share cost beyond smaller accounts. ZCSH, the first spot ETF to hold ZEC directly — created by converting Grayscale's older Zcash Trust, which carried roughly $313 million into its NYSE Arca debut — has pulled in more than $233 million since launching on Aug. 25, including a $46.6 million session this week and a $112 million day on Sept. 8, lifting net assets to about $890 million as of Sept. 17. Grayscale last took this route with its Ethereum Trust, cut 9-for-1 in December 2020. Our full breakdown of the ZCSH split timetable is here.

Shorts Crushed as ZEC Runs

The other side of the trade is paying for the run. Zcash has added 177.8% in a month, and accounts that fought the move have bled out fast. On-chain data shows a trader with 26 straight wins and an 89% strike rate across 47 positions closed a 12,285 ZEC short this week at a $10.68 million loss; that trade had carried a liquidation trigger at $1,550.66, and the account now shows no open positions. The largest book still exposed belongs to Garrett Jin, whose short of 37,999 ZEC — about $59.37 million — sits $33.87 million underwater after he built the position at an average of $671.05. A 1,333 BTC long, up $4.41 million, cushions part of the damage, and his liquidation price of $4,789.42 sits well above the 2016 all-time high of $3,191.93, leaving him room to move. Others fared worse: one address is down $12.53 million on a 13,487 ZEC short opened at $644.39, while another opened an 8,425 ZEC short at $330.91 with 10x leverage that now shows a $10.47 million loss. Our earlier reporting tracked Jin's growing ZEC stockpile ahead of the squeeze.

@lookonchain · X post

Short of 37,999 ZEC.

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Whale Withdrawals and Record ETF Flows

Spot demand backs the run. On-chain flows show one address withdrew 15,860 ZEC — about $22.69 million at the time — from Binance in a single day, with a second address moving 7,081 ZEC over two days, a pattern consistent with self-custody accumulation rather than selling. Institutional channels pointed the same way: ZEC exchange-traded funds absorbed $98.2 million in the week ending Sept. 18, the largest inflow among 14 products tracked, lifting fund assets 40.5% to $914.5 million. Attention followed price. Social analytics recorded Zcash mention volume at a one-month high on Sept. 17, with X posts running 6.8 times their 29-day baseline versus 1.7 times for other assets. The token has been the strongest performer among the ten largest altcoins this month, trading near $1,563 earlier in the session before cooling — a run consistent with bull market conditions. Unlike Monero, which major venues delisted under law-enforcement pressure, Zcash's optional transparency keeps it cleared on mainstream platforms, and fresh institutional attention followed after Paradigm disclosed its ZEC position. More background sits in our Zcash coverage, and our guide to buying Zcash covers venue selection and custody. Readers tracking the market in real time can follow live spot and futures prices on Bitget.

COINOTAG Signals: $1,523 Ceiling in Focus

The rally cooled over the weekend. Zcash pulled back from the $1,590 year-to-date high it set on Sept. 18 to $1,429 on Sunday, finding support above $1,440 with a daily loss of roughly 5% that ended a streak of double-digit gains — though the token still sits up 31% for the week, and its market cap has slipped below $25 billion. Attention has also shifted to a governance fight over the Zcash development fund, which channels part of block rewards to protocol work and expires in 2028. Dragonfly's Haseeb Qureshi has proposed sunsetting the fund, arguing its roughly $95 million balance suffices for remaining work and that a balance above $100 million would fuel grant politics. Paradigm's Matt Huang countered that sustained funding is vital against advancing quantum computing and AI-driven surveillance, while AngelList co-founder Naval Ravikant rejected off-chain social governance and a perpetual dev tax, warning it invites Sybil attacks and endless political struggle.

(as of 22:44 UTC) COINOTAG's proprietary 42-indicator composite S/R scoring engine rates the $1,522.89 resistance at 88/100 — a STRONG ceiling formed by Fibo 0.000, Donchian Upper, R1 and Stoch OB confluence — pressing directly on spot at $1,516.22, up 2.70% in 24 hours. The strongest support sits at $1,296.02, scoring 69/100 on S3, Flip R→S and Fibo 0.214 confluence, with a secondary shelf at $1,510.11 (45/100) right beneath price. Momentum is constructive: RSI at 69.90 nears overbought, MACD on a bullish signal, trend flagged as uptrend. Funding of 0.0061% is mildly positive while $1.15 billion in open interest keeps leverage sizable, and the Fear & Greed reading of 71 (Greed) argues against chasing strength. The bullish case holds while $1,296 stands; a clean break above $1,523 opens $1,914 (51/100). Losing $1,296 exposes $840.87 (56/100).