Key Takeaways
- • The Grayscale Zcash ETF (ZCSH, NYSE Arca) has recorded about $67.25 million in net outflows in October 2026, according to Coin Gabbar, after a strong launch in late August 2026.
- • Redemptions peaked on September 30 (about $30.25 million) and October 2 (about $26.93 million), and the week ended October 2 posted roughly $93.56 million in net outflows, the first negative week since launch.
- • Selling slowed sharply to about $3.57 million on October 5, while total assets fell from a peak near $979 million to about $751 million in early October.
- • The fund still holds about 3.41% of total ZEC supply, so its flows remain significant for the token's market structure.
- • ZEC fell roughly 20% from above $1,650 to about $1,300-$1,340 in early October, though the data does not establish that the ETF caused the decline; derivatives and broader market activity likely contributed.
Summary
Coin Gabbar reports that Grayscale's Zcash ETF has recorded about $67.25 million in net outflows so far this month, following one of the strongest launches among crypto ETFs. The product trades as ZCSH on NYSE Arca and holds physical ZEC rather than futures. It began trading in late August 2026, and when investors redeem shares, the fund releases coins back to the market.
The heaviest redemptions occurred on September 30, when about $30.25 million left the fund, and on October 2, when about $26.93 million was withdrawn. The week ended October 2 closed with roughly $93.56 million in net outflows, the first negative week since launch. Coin Gabbar notes that the weekly and monthly figures cover different periods, which accounts for the difference between them. Other reporting cited in the publisher context put the October outflow figure at about $59 million, underscoring that tracker totals vary. Outflows slowed to about $3.57 million on October 5. Assets have declined from a peak near $979 million to roughly $751 million by early October.
ZEC dropped from above $1,650 to around $1,300-$1,340 in early October, a decline of roughly 20%, following a split and rally in late September. Redeemed coins return to the open market, which can add selling pressure, but the article cautions that the flow data does not prove the fund caused the full decline. Derivatives trading and broader market conditions likely played a role. Liquidation data cited in the publisher context shows $8.0 million in ZEC liquidations, with shorts accounting for 76% of losses.
A 3.41% supply share is substantial for a single product, and Coin Gabbar notes that mining rewards also expand supply, so ETF flows are only one component of supply dynamics. Grayscale has also pursued converting its Zcash trust into a spot ETF, a move the publisher context characterizes as more institutional-friendly.
The next flow reports will indicate whether the October slowdown persists. The main risk identified is a second negative week, which would signal fading launch momentum. A lower ZEC price also reduces assets under management independent of redemptions. Separately, the NU7 upgrade is reportedly in testnet this month, with a mainnet decision expected in November, which could influence sentiment around ZEC.
The heaviest redemptions occurred on September 30, when about $30.25 million left the fund, and on October 2, when about $26.93 million was withdrawn. The week ended October 2 closed with roughly $93.56 million in net outflows, the first negative week since launch. Coin Gabbar notes that the weekly and monthly figures cover different periods, which accounts for the difference between them. Other reporting cited in the publisher context put the October outflow figure at about $59 million, underscoring that tracker totals vary. Outflows slowed to about $3.57 million on October 5. Assets have declined from a peak near $979 million to roughly $751 million by early October.
ZEC dropped from above $1,650 to around $1,300-$1,340 in early October, a decline of roughly 20%, following a split and rally in late September. Redeemed coins return to the open market, which can add selling pressure, but the article cautions that the flow data does not prove the fund caused the full decline. Derivatives trading and broader market conditions likely played a role. Liquidation data cited in the publisher context shows $8.0 million in ZEC liquidations, with shorts accounting for 76% of losses.
A 3.41% supply share is substantial for a single product, and Coin Gabbar notes that mining rewards also expand supply, so ETF flows are only one component of supply dynamics. Grayscale has also pursued converting its Zcash trust into a spot ETF, a move the publisher context characterizes as more institutional-friendly.
The next flow reports will indicate whether the October slowdown persists. The main risk identified is a second negative week, which would signal fading launch momentum. A lower ZEC price also reduces assets under management independent of redemptions. Separately, the NU7 upgrade is reportedly in testnet this month, with a mainnet decision expected in November, which could influence sentiment around ZEC.
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