Zcash Trust Volume Surges as Shielded Supply Hits Record Highs

The Grayscale Investments Zcash Trust has seen a sharp rise in trading activity, with average daily volume reaching about $1.7 million in April more than double the previous month. While still below late-2025 peaks, the trust has recorded its strongest activity since January, signaling renewed institutional interest.

Shielded ZEC Supply Reaches All-Time High

The underlying asset, Zcash, continues to see rapid growth in its privacy-focused usage. The shielded supply has expanded significantly over the past year, driven largely by the Orchard pool, which uses Halo 2 zero-knowledge proofs. Holdings in this pool have grown from 1.92 million ZEC to 4.55 million ZEC in 12 months. Nearly 30% of circulating supply is now shielded, marking the highest ratio in the network’s history.

Price Performance and Market Context

ZEC is currently trading around $330, reflecting a 50% gain over the past 30 days, though it remains down roughly 35% year-to-date. The combination of rising shielded supply and stronger trust volumes is being closely monitored as an indicator of both privacy demand and regulated institutional participation.

ETF Conversion and Institutional Signal

The Zcash Trust is also under review for potential conversion into an exchange-traded fund, following a registration filing with the U.S. Securities and Exchange Commission. Market participants are watching whether the trust can sustain more than $2 million in daily volume in the coming months, as this is increasingly viewed as a proxy for institutional appetite for privacy-focused crypto assets.