Zcash Pulled $500 Million Into Its ETF. Is ZEC Seriously Undervalued?

Zcash has gone from an overlooked privacy coin to one of crypto’s fastest-moving large assets. ZEC closed September 2 at roughly $814 and reached above $1,280 on September 9, gaining more than 50% in one week.

It has since pulled back to $1,101 as of today September 11th.

Grayscale’s newly listed Zcash ETF has crossed $500 million in assets in just two weeks, while ZEC’s price has surged alongside a sharp increase in trading activity.

Key Takeaways

• Grayscale’s Zcash ETF reached $532.9 million in AUM by September 8, only two weeks after its August 25 launch.
• DCG invested about $100 million, while outside investors contributed more than $70 million after launch.
• ZEC traded around $1,240 on September 9, giving it a market value above $20.8 billion and placing it among the 10 largest cryptocurrencies.

ALSO READ: Privacy Coins Are Beating Bitcoin And Ethereum: 5 Reasons To Buy Zcash Now

The Zcash ETF Has Grown Remarkably Fast

ZCSH began trading on NYSE Arca on August 25. By September 8, its assets had reached $532.9 million, according to Grayscale. The fund held 464,515 ZEC at that date.

DCG International Investments added about $100 million through an exchange of 85,705 ZEC for ETF shares. External inflows have exceeded $70 million since launch.

The fund also began options trading on September 8, giving investors another way to take directional or hedging positions.

ETF Demand Is Changing ZEC’s Supply Equation

Zcash has about 16.86 million ZEC in circulation against a maximum supply of 21 million. The ETF’s disclosed holdings therefore equal roughly 2.8% of circulating supply.

That is significant for an asset that has already moved from $814 on September 2 to above $1,240 on September 9. ZEC also recorded more than $1.3 billion in 24-hour trading volume today.

But the rally creates a valuation problem. At more than $20.8 billion, Zcash now ranks around 10th by market value. Continued ETF accumulation could support the price, but slowing demand would leave a much larger valuation to defend.

Is ZEC Now Undervalued?

The answer depends on whether ETF demand represents a lasting allocation trend or a launch-driven surge. ZCSH charges a 2.50% management fee, while the fund provides regulated exposure without requiring investors to hold ZEC directly.

ZEC has also climbed above $1,200 for the first time in years, making the next phase more dependent on sustained buying rather than simply recovering from depressed prices.

Conclusion

Zcash has produced an unusually strong ETF launch, but ZEC has also repriced rapidly. InvestingHaven’s premium crypto service provides a deeper framework for assessing ZEC’s valuation, key price levels and potential upside scenarios as institutional demand develops.

For now, the biggest question is whether ETF accumulation can continue fast enough to justify ZEC’s new $20 billion-plus valuation.

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