Zcash ETF Outflows Hit $93.6M as ZEC Falls 21%
Grayscale’s Zcash ETF, ZCSH, recorded $93.56 million in net outflows in the week ended October 2, its first negative week since late August. Redemptions reached $30.25 million on September 30 and $26.93 million on October 2. The Zcash ETF’s cumulative net inflows fell to about $212.56 million, while total net assets declined to roughly $751 million from a peak near $915 million–$979 million.
ZEC closed at about $1,304 on October 3, down around 21% from its September 26 close near $1,653 and below its recent high above $1,650. The outflows coincided with falling ZEC perpetual open interest, profit-taking and weaker spot momentum. However, the available data does not establish that Zcash ETF redemptions caused the entire decline. Continued withdrawals could still add selling pressure if the fund liquidates holdings.
Grayscale converted its Zcash Trust into the ZCSH spot ETF on August 25. The fund completed a three-for-one share split on September 30, which reduced the per-share value without changing investors’ overall holdings. Digital Currency Group invested about $100 million through an authorised participant transaction on September 8. Traders should also monitor Zcash’s NU7 upgrade: testnet activation was expected around October 6, with mainnet targeted for November 5. The upgrade is designed to reduce target block times from 75 seconds to 25 seconds and revise fee sustainability and shielded-transaction protections.
Bearish
The immediate market signal is bearish for ZEC. The Zcash ETF recorded its largest weekly outflow since launch, assets under management fell to about $751 million, and ZEC dropped roughly 21% over the measured period. Falling perpetual open interest and weaker spot momentum suggest reduced leverage and waning demand. If ETF redemptions continue and holdings are sold to meet withdrawals, they could create additional short-term supply pressure.
The downside signal is not conclusive because the price decline also reflects profit-taking and broader market positioning. The three-for-one share split changes the trading price of ZCSH shares but does not alter fund value or ZEC fundamentals. In the longer term, the NU7 upgrade could support sentiment if faster block times and improved fee sustainability attract network activity. Until ETF flows stabilise and price momentum improves, however, traders are more likely to treat rallies as vulnerable to further selling.