Zcash clears $1,000 as XRP falls 50% in a year

Zcash (CRYPTO:ZEC) closed at $1,024 on September 4, its first finish above the $1,000 mark, and held near $1,013 on September 5. The milestone followed a two-week surge from $569 to over $1,000, coinciding with the debut of Grayscale's spot Zcash ETF on NYSE Arca on August 25.

The privacy-focused coin has gained 2,361% from $41 in September 2025. In contrast, XRP (CRYPTO:XRP) trades at $1.41, down 50% over the same twelve-month period. Bitcoin (CRYPTO:BTC) also declined 28% to $79,657. The divergence highlights a market where Zcash, valued at $17 billion, has outperformed XRP's $88 billion market capitalization. The smaller size of Zcash means capital flows move its price more sharply than larger peers.

Grayscale's ETF launched with $304 million in assets and grew to $414.7 million by September 4. The fund is a conversion of a trust Grayscale has operated since 2017, which held $137 million in November 2025. The listing expanded access to the coin for pensions, advisors, and family offices who may not hold tokens directly. On September 4, Zcash reached an intraday high of $1,051 before closing at $1,024, triggering a squeeze of $34.5 million in short positions.

Regulatory developments also shaped Zcash's trajectory. The SEC closed a two-year investigation into the Zcash Foundation on January 14, 2026, without taking action. This decision followed a period of U.S. pressure on privacy tools that prosecutors had treated as money-laundering software. The regulatory clarity preceded the ETF launch by seven months.

XRP faces different hurdles despite its own regulatory wins. The SEC and CFTC jointly classified XRP as a digital commodity on March 17, 2026, ending legal uncertainty stemming from the SEC's 2020 lawsuit against Ripple. U.S. spot XRP ETFs have been active since November 2025, accumulating $1.66 billion in inflows, including a record $110 million in the week to August 28. However, these factors have not prevented XRP from falling harder than Bitcoin during the current market downturn.

Macro conditions weigh on all major cryptocurrencies. The Federal Reserve has held rates at 3.50% to 3.75% since December 2025, while the 10-year Treasury yield reached 4.82% on September 4, its highest since January 2025. With government bonds offering attractive yields and Bitcoin paying no income, capital has shifted away from digital assets.

Zcash's ability to maintain its new level depends on continued inflows into the Grayscale fund. A daily close above $1,100 with sustained asset growth would indicate ongoing buyer control. Conversely, a close below $850 could signal a return to pre-ETF price levels seen on August 25. For XRP holders, the Senate's vote on the CLARITY Act scheduled for September 15 could codify the coin's commodity status into permanent law.