Key Highlights
- ZCSH plans a 3-for-1 share split after attracting over $233 million in inflows since its August 25 launch.
- ZEC hits $1,521 as mining activity rises, with network computing power up nearly 28%.
- Zcash’s NU7 upgrade targets November 5, cutting block times from 75 seconds to 25 seconds.
Grayscale’s Zcash ETF (ZCSH) is preparing for a 3-for-1 share split after investors poured more than $233 million into the fund since its launch on August 25.
According to a Form 8-K filing dated September 18, the split is expected to give shareholders two additional shares for every share they hold, with adjusted trading set to begin on September 30.
The share split will apply to investors who hold ZCSH at the close of trading on September 28. Grayscale will distribute the additional shares after the market closes on September 29. Trading will then begin on a split-adjusted basis on September 30, while the ETF will continue trading under the ZCSH ticker.
A 3-for-1 split means an investor who owns one share will have three shares after the split. However, the split itself does not add new value to the investor’s holdings. Instead, the value of each individual share is adjusted to reflect the increase in the number of shares.
Investors pour $233 million into ZCSH
The split comes as ZCSH continues to see trading activity less than a month after its launch.
According to data from SosoValue, investors added $46.6 million to the fund on Wednesday alone, while more than $112 million flowed into the ETF on September 8.
By September 17, ZCSH had about $890 million in net assets. The fund had also recorded more than $11 billion in cumulative trading volume since it began trading.
ZEC climbs to a new price high
The ETF’s activity has coincided with a major move in Zcash’s native token, ZEC. The token climbed as high as $1,531 early Friday, marking a new effective all-time high based on the price data cited.
As ZEC moved higher, more computing power also entered the Zcash network. According to Zcash Info, the network’s estimated solrate rose from around 25 GSol/s in late August to just under 32 GSol/s. That is an increase of nearly 28%.
In simple terms, solrate measures the computing power being used by miners on the network. As more miners join and add machines, competition for mining rewards increases.
Zcash prepares for the NU7 upgrade
Another major development is coming to the Zcash network. The ecosystem is preparing for the NU7 upgrade, with testnet activation planned for October 6 and mainnet activation scheduled for November 5.
Zcash co-founder Sean Bowe said the Zcash Foundation, Project Tachyon, Valar Group, ZODL, Shielded Labs, and other teams had agreed on the upgrade timeline. Developers are expected to make a final decision on the mainnet block height and activation on October 20, after almost two weeks of testing.
The NU7 upgrade is expected to cut Zcash’s block time from 75 seconds to 25 seconds. This would allow transactions to receive confirmations faster. The upgrade will also disable older v4 transactions while keeping Zcash’s current halving schedule.
The planned changes are not expected to have a major effect on wallets. However, some network infrastructure may need to be updated before the upgrade goes live.
For ZCSH investors, the next key date is September 28. Anyone holding shares at market close that day will receive the additional shares, with split-adjusted trading starting two days later on September 30.
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