Grayscale's Zcash ETF plans 3-for-1 split after $233 million inflow surge

Grayscale's Zcash ETF is moving to undergo a 3-for-1 share split less than a month after it began trading.

At market close on Sept. 28, ZCSH shareholders will receive two additional shares for every share they own, according to a Friday filing with the Securities and Exchange Commission. New shares will be distributed after market close on Sept. 29, and split-adjusted trading begins on Sept. 30.

Investors have cumulatively poured more than $233 million into ZCSH since launching on Aug. 25, including a $46.6 million day on Wednesday and more than $112 million on Sept. 8.

The fund held around $890 million in net assets and generated more than $11 billion in cumulative trading volume as of Sept. 17.

This comes as Zcash's native ZEC token climbed as high as $1,521 early Friday, marking what would be considered a new effective all-time high.

ZEC mining rush

The rally has also drawn waves of additional compute power to the Zcash network. Its estimated solrate, which is essentially equivalent to its network hashrate, has climbed from around 25 GSol/s in late August to just under 32 GSol/s, an increase of nearly 28%, according to Zcash Info.

Mining difficulty has risen alongside it to about 291 million, also a record high. 

The increased competition, however, is starting to weigh on revenue generated by each machine. Earlier this month, estimated gross revenue for Bitmain's Z15 Pro has already slipped below its late-August level despite ZEC's price rally, as the network needed to divide rewards among more computing power.