Zcash Price Surges as Grayscale ZCSH ETF Sees Strong Inflows

Key Insights

• Zcash price jumped to a record high this week.
• The recently launched Grayscale Zcash ETF is seeing strong inflows.
• The futures open interest has jumped to a record high of $2.8 billion.

Zcash price has soared in the past few months, and has continued to beat popular cryptocurrencies like Bitcoin, Ethereum, and XRP. ZEC crossed the $1,000 milestone on September 3rd and continued the rally, hitting a record high of $1,250. It has soared by 2,422% in the last 12 months, a surge that has helped it become a top-ten coin.

There are signs that American investors are interested in Zcash, the biggest privacy coin in the industry. Grayscale, a top company in the financial services industry, successfully converted its Zcash Trust into an ETF.

Data shows that the initial days for the Grayscale Zcash Trust (ZCSH) have been successful, as its inflows have continued rising. Data compiled by ETF Db shows that the fund has had inflows in the last four consecutive days, with the number rising by the day. Zcash had inflows of over $12 million on September 2nd, after adding $8.94 million a day earlier.

As a result, the fund has had close to $35 million in inflows, bringing the total assets under management to over $463 million. It now holds over 444,600 ZEC tokens in its fund, and this rally will likely continue as the ZEC token surges.

ETF inflows are usually bullish for tokens since it signals that institutional investors are accumulating it. This is an important thing for Zcash, whose ETF has an expense ratio of 2.50%. This simply means that a $100,000 investment in the fund will cost about $2,500 in fees, a big number considering that some of the biggest ETFs charge less than 0.05% in annual fees.

In addition to ETF inflows, data show that Zcash is seeing increased demand in the spot and futures markets, a sign that investors are embracing the Fear of Missing Out (FOMO). According to CoinMarketCap, the coin had a 24-hour volume of over $2.2 billion, making it one of the most actively traded coins in the crypto market.

CoinGlass data show that the 24-hour futures open interest has jumped to a record high of $2.8 billion. This is a big jump since the open interest bottomed at just $340 million earlier this year.

Open interest is an important metric that measures the number of put and call options outstanding in the futures market. A higher figure is a sign of increased liquidity and demand for the coin. At the same time, the weighted funding rate has remained in the green over the past few weeks, a sign that investors anticipate the future price will be higher than it is today.

Most importantly, data shows that Zcash’s usage is climbing. One of the best ways to look at this is the amount of ZEC tokens in shielded pools. They have soared to 4.864 million, its highest level since June this year. It has jumped from last month’s low of 4.3 million.

The daily chart reveals that the ZEC price has been in a strong surge in the past few months and is now at the highest level on record. It recently crossed the important resistance level of $747, its highest level on November 15 last year. Rising above that level confirmed the bullish breakout.

The token has jumped above all moving averages, while the Average Directional Index (ADX) suggests that the momentum is continuing. However, the Relative Strength Index (RSI) has jumped to the overbought level of 82. This means that it may drop a bit in the near term as investors book profits.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets can experience sharp price movements.

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