Grayscale’s U.S.-listed spot Zcash ETF, trading under the ticker ZCSH, posted $93.56 million in net outflows for the week ended Oct. 2. The reversal came after a strong September for ZEC and marked the fund’s first negative week since late August.
The outflows coincided with a sharp pullback in the underlying token. ZEC fell from a late-September high near $1,650 to about $1,304 by Oct. 3, easing back toward the $1,300 level after its earlier rally.
Redemptions cut into assets, but cumulative flows stay positive
The weekly withdrawals reduced ZCSH’s total net assets to roughly $751 million. Even so, the ETF’s cumulative net inflows remained in positive territory at about $212.56 million, indicating that earlier gains in demand had not been fully erased.
The largest daily redemptions during the week came on Sept. 30, when the fund recorded $30.25 million in outflows, and on Oct. 2, when another $26.93 million left the product. Those moves were the main contributors to the negative weekly figure.
ZEC retraces after September surge
The ETF weakness unfolded alongside a notable decline in Zcash itself. After climbing to nearly $1,650 in late September, ZEC gave back part of those gains and was trading around $1,304 by Oct. 3.
The source article says ETF withdrawals were part of the picture, but not the only factor behind the move. It also pointed to reduced leverage, profit-taking after September’s rally, and shifts in spot demand as influences on the price retracement.
Share split and prior capital injection
At the end of September, Grayscale completed a three-for-one forward share split for ZCSH. The split increased the number of shares outstanding but did not change the overall value held by investors.
Earlier in September, Digital Currency Group had put about $100 million into ZCSH through an authorized participant transaction. That investment came before the latest week of redemptions and formed part of the fund’s still-positive cumulative flow total.
Next network milestone is scheduled for November
Beyond ETF flows and price action, Zcash is also heading toward its next round of network changes. NU7 testnet releases are forthcoming, and mainnet activation is planned for early November.
That upgrade timeline is the next confirmed development cited in the source. For now, the latest fund flow data shows a break in ZCSH’s positive run, while cumulative inflows remain above water despite the week’s large withdrawals.
Source: crypto.news