Grayscale pledges $1 million to Zcash ecosystem as ETF and token fall
The money will be drawn from the fund’s sponsor fee and will fund a national advertising blitz as the Zcash ETF reports continued net outflows.
Key takeaways
- 1$1 million pledged to Zcash ecosystem nonprofits
- 2Zcash ETF held $675.7 million in assets as of Nov 9 with a 2.5 percent annual sponsor fee
Grayscale Investments said on Tuesday it will allocate $1 million from the fees it collects on its Zcash exchange‑traded fund to finance ecosystem‑focused nonprofit projects. The allocation will be funded through the fund’s sponsor fee and will be announced alongside a new advertising campaign.
The $1 million will be drawn from the ETF’s 2.5 percent annual sponsor fee and earmarked for a national ad blitz that Grayscale launched as Zcash fell more than 11 percent on the day. The Zcash ETF, listed on NYSE Arca under the ticker ZCSH, held $675.7 million in assets as of Nov 9 and has recorded net outflows each week since October, extending a period of investor withdrawals.
Grayscale is a U.S.-based digital‑asset manager that offers a suite of cryptocurrency‑linked exchange‑traded funds to retail and institutional investors. Zcash is a privacy‑oriented blockchain that allows users to shield transaction data, and its ETF provides exposure to the coin without requiring direct custody.
By directing fee revenue to nonprofits, Grayscale hopes to improve the perception of Zcash and encourage development activity, which could help stem the current outflow trend. Market participants will monitor subsequent ETF subscription figures and any further promotional efforts to gauge whether the strategy stabilises investor interest.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.