Zcash ETF at 1 billion$ : what the figure conceals
Grayscale announced that its Zcash ETF surpassed 1 billion$ in assets in 30 trading sessions. Its head, Krista Lynch, ranked it among the decade’s top 1% of ETF launches, based on the first month.
What the figure tells us
→ As of September 24: 1 billion$ in assets, but 306.12 million$ in cumulative net inflows (SoSoValue)
→ The fund is a conversion of a trust that has held ZEC since October 2017, so it wasn’t starting from zero
→ ZEC was worth around 1,540 $ at the time of the milestone, nearly double its price at launch
→ An in-kind exchange of 85,705 ZEC by DCG, worth around $100 million, is counted in the inflows: according to Crypto Economy, external capital would amount to around $200 million
Where ZEC stands: around $1,227, down 7.7% this week but up 139% year to date (CryptoTicker). That’s around 20% below the milestone price (my calculation). The fund’s assets have therefore probably declined, without any outflows.
Another development: Winklevoss Asset Services has filed for a competing fund, under the ticker WINK on Nasdaq, pending approval.
My analysis: for an ETF, net inflows measure demand, while assets combine demand, history, and price. The two figures answer different questions.
This is not investment advice.
When assessing a crypto ETF, do you look more at assets under management or net inflows? #EtherETFsExtendOutflowsToNineDays
Grayscale announced that its Zcash ETF surpassed 1 billion$ in assets in 30 trading sessions. Its head, Krista Lynch, ranked it among the decade’s top 1% of ETF launches, based on the first month.
What the figure tells us
→ As of September 24: 1 billion$ in assets, but 306.12 million$ in cumulative net inflows (SoSoValue)
→ The fund is a conversion of a trust that has held ZEC since October 2017, so it wasn’t starting from zero
→ ZEC was worth around 1,540 $ at the time of the milestone, nearly double its price at launch
→ An in-kind exchange of 85,705 ZEC by DCG, worth around $100 million, is counted in the inflows: according to Crypto Economy, external capital would amount to around $200 million
Where ZEC stands: around $1,227, down 7.7% this week but up 139% year to date (CryptoTicker). That’s around 20% below the milestone price (my calculation). The fund’s assets have therefore probably declined, without any outflows.
Another development: Winklevoss Asset Services has filed for a competing fund, under the ticker WINK on Nasdaq, pending approval.
My analysis: for an ETF, net inflows measure demand, while assets combine demand, history, and price. The two figures answer different questions.
This is not investment advice.
When assessing a crypto ETF, do you look more at assets under management or net inflows? #EtherETFsExtendOutflowsToNineDays