Zcash hits $1,000 milestone as ETF inflows surge

Zcash price breaks $1,000 after ETF launch

Zcash's native token, ZEC, has risen above $1,000. This is the first time the privacy-focused cryptocurrency has reached this level since late 2016. The price increase comes as investors pour money into a newly launched Zcash exchange-traded fund (ETF) and miners add more computing power to the network.

ZEC traded as high as $1,023 on Friday. The jump has added roughly 94% to the token's value over the past month, pushing the total market capitalization toward $17 billion. In March, the token was trading around $200.

ETF inflows show strong investor demand

The rally follows the Aug. 25 launch of the Grayscale Zcash ETF. The fund trades on the NYSE Arca under the ticker symbol ZCSH. It is the first U.S. ETF to give investors direct exposure to ZEC.

According to Grayscale data, the fund has attracted approximately $34.4 million in net inflows since it began trading. The strongest day was Sept. 2, when $12.6 million flowed in. Data for the most recent days may be incomplete.

Miners add hardware as profits shrink

Interest in Zcash has also increased activity on its mining network. Mining measures the work computers do to secure the blockchain and process transactions. Network computing power, known as solrate, rose from about 25 GSol/s in late August to just over 30 GSol/s.

However, the rise in competition has lowered earnings for individual miners. A Bitmain Antminer Z15 Pro machine currently generates an estimated $708 in gross revenue per unit of electricity used. That is about 3% less than the $727 recorded on Aug. 24, when ZEC was trading under $900.

What is confirmed

• ZEC traded above $1,000 for the first time since late 2016.
• The Grayscale Zcash ETF launched on Aug. 25.
• The ETF has recorded at least $34.4 million in net inflows.
• Network computing power has risen above 30 GSol/s.

Why this matters

The price surge shows how traditional investment products like ETFs can move the value of smaller cryptocurrencies. As more institutions use these funds to buy ZEC, demand for the token rises. At the same time, rising mining competition highlights the challenge for early adopters trying to profit from the network's growth.

Sources

• The Block