Grayscale’s Zcash ETF recorded approximately $93.6 million in net outflows over the past week, marking the first weekly period of net redemptions since the fund launched on August 25.
The withdrawal represents roughly 30% of the ETF’s cumulative net inflows since inception, signaling a notable reversal in investor flows after several weeks of positive demand.
The shift has coincided with renewed weakness in Zcash. ZEC has fallen to around $1,308, down approximately 17.5% since the beginning of the week and nearly 23% below its recent high of $1,690.
ETF flows have also remained under pressure for several sessions. The Grayscale fund has recorded no day of net inflows since September 22, extending the period of deteriorating demand into the latest week.
The timing of the outflows alongside ZEC’s decline is significant because it points to a simultaneous weakening in both market price and ETF demand. While the available figures do not establish a direct causal relationship between the two, the combination represents a clear change from the fund’s earlier flow pattern.
The scale of the withdrawals is particularly notable relative to the ETF’s accumulated inflows since launch. Losing around 30% of those net inflows in a single week substantially reduces the amount of capital that had remained in the fund, making the next flow readings important for determining whether the latest outflows represent a temporary reversal or the beginning of a more persistent trend.
For Zcash, the key factor to watch is whether ETF redemptions continue while the token trades below its recent peak. A stabilization in fund flows could ease pressure on the market, while continued outflows would reinforce the deterioration in investor demand.
