@Grayscale's spot $ZEC ETF has turned sharply negative this month, recording $67.25 million in net outflows so far in October, according to data shared by @BSCNews. The fund, which trades und
@Grayscale's spot $ZEC ETF has turned sharply negative this month, recording $67.25 million in net outflows so far in October, according to data shared by @BSCNews. The fund, which trades under the ticker ZCSH on NYSE Arca, still holds 3.41% of Zcash's total circulating supply despite the sustained redemptions.
ZCSH debuted on August 25, 2026, on NYSE Arca, converted from the existing Grayscale Zcash Trust, and became the first US-listed spot ETF offering direct exposure to ZEC tokens. The opening weeks were exceptional. The fund gathered more than $1 billion in its first 30 trading days, placing it among the top 1% of ETFs launched over the past decade by assets gathered in their first month, according to Grayscale's managing director for trading and capital markets, Krista Lynch.At its peak, ZCSH accounted for up to 32.5% of all spot crypto ETF trading volume in its strongest week.
By mid-September, cumulative net inflows reached $271 million, with the busiest week ending September 18, 2026, pulling in $98.2 million in fresh capital.Total assets under management had ballooned to around $996 million as of late September.
Redemptions then accelerated, with daily outflows reaching $30.25 million on September 30 and $26.93 million on October 2.The ETF experienced outflows every day during the first four trading days of October, with no new investments recorded since September 22.
Zcash ETF investors appear to be taking profits following a remarkable 768% increase in ZEC over the past year, rather than abandoning the asset entirely. October's outflow represents about 7% of the fund, while ZEC itself has climbed 11% this month. That divergence between ETF flows and token price suggests the selling is being driven more by profit-taking than by a loss of conviction in Zcash's fundamentals.
As a spot ETF, ZCSH holds actual ZEC coins behind its shares. When selling outpaces buying, the fund must redeem shares, prompting Grayscale to sell some of its ZEC holdings to pay out investors cashing out.That selling pressure can affect ZEC's price directly, as each coin the fund sells increases the supply available on exchanges. Despite the pressure, the fund remains net positive since launch, though the cushion has narrowed considerably.
Sources:The Block: Grayscale says crypto ETF market is entering new phase as Zcash ETF tops $1 billion24/7 Wall St.: Zcash ETFs Have Lost $59 Million in October While the Coin Keeps ClimbingCrypto Briefing: Grayscale's Zcash ETF sheds $93.56 million in a single week
