ZCSH’s net assets hit $914.53 million, tripling in just three weeks and investors have put in around $271 million since the fund launched in August according to SoSoValue.
- Grayscale announced on Friday it intended a 3-for-1 forward split of the Zcash ETF.
- Holders of record on September 28 will receive two extra shares after the close on September 29, with post-split trading starting September 30.
- The ticker and CUSIP will remain unchanged, and neither will the value of a holding.
Zcash (ZEC) edged higher on Saturday after Grayscale announced that it intends to split the shares of its Zcash ETF (ZCSH) three-for-one, less than a month after the fund started trading.
On Friday Grayscale said that it would hand existing holders two extra shares for every one they own and cut the price of each to roughly a third.
The split applies to shareholders of record at the market close on September 28. The extra shares will be paid out after the close on September 29. Shares are expected to trade on a post-split basis before the market opens on the following day. The fund will keep trading on the New York Stock Exchange (NYSE) Arca under the same ticker, “ZCSH,” Grayscale said.
Its Committee on Uniform Securities Identification Procedure (CUSIP) number, which is a code used to identify stocks and financial instruments, will not change either.
What The Split Does
A forward split increases the number of shares and cuts the price of each one. What an investor owns remains untouched.
Each pre-split share becomes three post-split shares, and each will be worth about a third of the old share. Grayscale also substantiated it with an example. For example, an investor holding 10 shares at $300 each would end up with 30 shares at $100 each, with the price for both adding up to $3,000.
Why Splitting Now?
The answer lies in how quickly money has moved into the fund. The fund’s net assets reached over $914 million on Friday, according to SoSoValue data. That was up from $348.31 million earlier this month, nearly tripling in under three weeks.
Investors have put in around $271 million since the fund launched in August, SoSoValue data showed. About $250 million of that came in September itself. The fund holds 3.59% of Zcash’s market value, according to data.
The share price has also climbed with the fund. ZCSH stock closed on Friday at $117.72, down over 1% on the day. A three-for-one split would take that to roughly $39.24. That will put the shares within reach of smaller buyers.
On Stocktwits, retail sentiment around ZCSH remained in the ‘extremely bullish’ zone, while chatter stayed at ‘extremely high’ levels over the past day.
ZEC Holds Above $1,500
The token itself drove the fund’s run. ZEC’s price traded above $1,500 over the past 24 hours. On Stocktwits, retail sentiment around ZEC moved from the ‘extremely bullish’ to the ‘bullish’ zone, while chatter stayed at ‘high’ levels over the past day. It was one of the top trading tickers on Stocktwits on Saturday.
However, the token still sits far below its peak of $3,191.93, reached in October 2016. The token was up over 205% so far this year.
The rally followed a holder vote on the network’s next upgrade. Holders backed cutting block times to 25 seconds from 75 seconds. They also voted to keep Bitcoin-style halvings, which won 98.9% of the vote.
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