Zcash Surges 41% in a Day to Record High Since Binance Listing

Zcash surged more than 40% in a day, hitting its highest price since listing on Binance. Buying accelerated amid expectations for a conversion to a spot exchange-traded fund and institutional expansion into mining.

On Aug. 21, Zcash climbed as high as $833.10 on Binance's USDT market. That marked its highest price since the token was listed on the exchange. It later slipped to $811.56 as traders locked in profits, but remained up 41.19% from a day earlier. Its market capitalization expanded to about $13.9 billion.

The recent rally was partly driven by expectations surrounding Grayscale's effort to convert its ZEC trust into a spot ETF. The company filed documents with the US Securities and Exchange Commission to convert the existing Zcash Trust into a spot ETF to be listed on NYSE Arca. An amended securities registration statement disclosed at the end of July said the product would be renamed the Grayscale Zcash ETF if the listing proceeds.

Institutional expansion into mining also added momentum. Cypherpunk Technologies, backed by Winklevoss Capital, said on Aug. 18 that it had secured Zcash mining equipment through a $33.33 million stock deal. The equipment accounts for about 18% of the Zcash network's total computing power. The company currently holds 323,394 ZEC, or about 1.9% of circulating supply, and has set a long-term goal of securing 5% of supply.