Grayscale Sets 3-for-1 Zcash ETP Split After Rapid Asset Growth

Grayscale plans a 3-for-1 forward share split for ZCSH after the product surpassed $500 million in assets following its August NYSE Arca debut. The split will lower ZCSH’s per-share price without changing the total value of an investor’s holdings.

ZCSH Share Split Takes Effect Sept. 30

Investors who hold ZCSH at the market close on Sept. 28 will receive two additional shares for every share they own. Grayscale plans to distribute the additional shares after the market closes on Sept. 29.

Split-adjusted trading is expected to begin before the market opens on Sept. 30. ZCSH will continue trading on NYSE Arca under the same ticker and CUSIP number.

Split Lowers Price Per Share, Not Position Value

A forward split increases the number of shares outstanding while reducing the value represented by each share proportionally. Grayscale said ZCSH’s net asset value per share should fall to roughly one-third of its pre-split level.

The firm illustrated the change with a hypothetical investor holding 10 shares at a NAV of $300 each. After the split, that position would become 30 shares at about $100 each, while its total value would remain $3,000.

Zcash ETP Surpassed $500M in Assets

ZCSH began trading on NYSE Arca on Aug. 25 after Grayscale converted the former Grayscale Zcash Trust into an exchange-traded product. By Sept. 8, Grayscale said assets under management had surpassed $500 million.

The company said the total included more than $70 million in cumulative inflows after launch. It also included a roughly $100 million Digital Currency Group transaction involving ZEC contributed through an authorized participant.

The transaction involved 85,705.32563297 ZEC, according to Grayscale’s filing. Grayscale Head of Index Steve Vanourny highlighted the inflows when the product crossed the $500 million mark.

“The latest AUM milestone includes ZCSH seeing cumulative inflows of more than $70 million in the two weeks since launching as an ETP.”

ZCSH Keeps the Same ZEC Exposure After Split

The share split does not change ZCSH’s investment objective or its exposure to ZEC. The product holds Zcash and seeks to reflect the value of those holdings, fewer expenses and other liabilities.

ZCSH charges a 2.50% management fee. It is structured as an exchange-traded product rather than a fund registered under the Investment Company Act of 1940, so it does not receive the same regulatory protections as a registered investment-company ETF.