Zcash is back in focus following a new development that expands access for institutional investors. Options trading for Grayscale’s Zcash ETF, ZCSH, began on September 8.
The development came shortly after a strong rally in ZEC. Zcash climbed to $1,249.28 on September 6, reaching its highest level since 2016.
ZEC later pulled back from the peak. Even so, the token has gained more than 30% over the past week, making it one of the strongest-performing major crypto assets.
Options trading begins for Grayscale Zcash ETF
Grayscale announced on September 8 that options trading for ZCSH had started. Investors are now able to gain exposure to the Zcash-linked product through more than just ETF shares.
The new structure allows traders to use call and put options based on the price of ZCSH. These instruments can support different trading strategies and help investors hedge existing positions.
Options trading also broadens Zcash’s presence in traditional financial markets. It creates another way for professional investors and institutions that use derivatives to gain exposure to ZEC.
Grayscale launched ZCSH on NYSE Arca on August 25. The company describes the product as the world’s first exchange-traded product offering spot exposure to ZEC.
ZCSH attracts more than $34 million in inflows
Fund flows accelerated after the Grayscale Zcash Trust was converted into an ETF structure. According to calculations by The Block based on Grayscale data, ZCSH recorded at least $34.4 million in net inflows through September 4.
The fund’s strongest day came on September 2. ZCSH attracted approximately $12.6 million in fresh capital on that day alone.
According to Grayscale’s latest available figures, assets under management reached $463.2 million as of September 4. ZCSH held approximately 444,608 ZEC.
The number of ZCSH shares outstanding stood at roughly 5.55 million. The fund carries an annual management fee of 2.50%.
However, the $463 million in assets under management does not represent new capital flowing directly into the ETF. ZCSH was created through the conversion of the previously traded Grayscale Zcash Trust.
The sharp increase in ZEC’s price also raised the dollar value of the fund’s existing holdings. For that reason, assets under management and net ETF inflows need to be evaluated separately.
ZEC reaches its highest level since 2016
As interest in institutional investment products increased, ZEC also posted a sharp price rally. The token climbed as high as $1,249.28 on September 6, marking its highest level in nearly 10 years.
The move did not represent a new all-time high for Zcash. Market data shows that ZEC’s record high remains $3,191.93, reached on October 28, 2016, when the token was still in the early stages of its supply distribution.
Another important milestone in the latest rally came on September 4. ZEC moved above the $1,000 mark, while its monthly gain reached approximately 94%.
During the same period, ETF inflows accelerated and activity across the Zcash mining network increased. The network’s hash rate briefly climbed above 30 GSol/s, compared with roughly 25 GSol/s in late August.
Still, it is difficult to attribute ZEC’s rally entirely to ETF demand. Increased activity in derivatives markets, short-position liquidations and growing interest in privacy-focused cryptocurrencies also contributed to the move.
With options trading now available for ZCSH, Zcash has taken another step toward broader access within traditional financial markets.
