Altcoin ETF Selloff: Zcash Loses $11M as SOL, AVAX and HYPE Funds Face Withdrawals

Key takeaways

• Zcash ETFs lead altcoin withdrawals with $11 million
• Solana, Avalanche and Hyperliquid funds also lose capital
• Hedera attracts inflows despite broader institutional selling

US altcoin exchange-traded funds recorded widespread withdrawals on November 5, with Zcash leading the selloff as investors reduced exposure to several major cryptocurrencies.

According to SoSoValue data, the Grayscale Zcash ETF lost $10.99 million, while Hyperliquid, Solana, Avalanche and NEAR funds also experienced net outflows.

Together, the five asset categories recorded approximately $16.8 million in withdrawals. Hedera was the exception, attracting roughly $278,000 as broader cryptocurrency markets struggled with renewed selling pressure.

Zcash ETF Loses $11 Million as Solana and HYPE Follow

Grayscale's Zcash ETF, trading under the ticker ZCSH, recorded the largest individual altcoin fund withdrawal.

The $10.99 million outflow reversed the previous session's $3.43 million inflow, leaving the fund with approximately $724.2 million in net assets and $206.7 million in cumulative net inflows.

The reversal follows months of volatile demand for ZEC investment products.

Coinpaper previously examined how Grayscale's Zcash ETF approached $1 billion in assets, driven partly by the cryptocurrency's earlier price rally.

Hyperliquid funds experienced the second-largest withdrawals, losing approximately $3.02 million. Bitwise's BHYP accounted for $2.19 million, while Grayscale's HYPG lost roughly $829,000.

Solana ETFs recorded $1.18 million in withdrawals after three consecutive sessions without net flows.

The renewed selling follows an earlier Solana ETF outflow streak, when institutional investors withdrew $24.8 million in one week.

Avalanche funds lost approximately $841,000, while NEAR recorded $774,000 in withdrawals.

Hedera Defies Altcoin ETF Selling Pressure

Hedera's ETF market stood out as the only tracked altcoin category attracting new capital.

The Canary HBAR ETF recorded approximately $278,000 in inflows, marking its second consecutive positive session.

Its cumulative net inflows reached approximately $116.7 million, despite a comparatively modest $57.5 million in net assets.

The contrast shows that institutional demand remains selective rather than uniformly bearish.

Earlier Grayscale ETF restructuring decisions demonstrated how product availability and issuer strategies can change independently of individual cryptocurrencies' fundamentals.

Meanwhile, XRP ETFs recorded no net flows for a third consecutive trading day, extending the stagnation described in Coinpaper's recent XRP ETF analysis.

Dogecoin, Chainlink, Litecoin and several other altcoin categories also reported no net creations or redemptions.

What the ETF Selloff Means for Altcoins

The withdrawals occurred during a broader cryptocurrency correction, with Bitcoin ETFs losing $430.2 million and Ethereum funds recording approximately $99.9 million in outflows.

However, ETF withdrawals do not always translate directly into equivalent immediate selling pressure on the underlying tokens.

Fund creations, redemptions and market-maker activity can affect holdings differently depending on each product's structure.

Coinpaper previously examined Grayscale's in-kind subscription mechanisms, which illustrate how investors can exchange eligible cryptocurrencies for fund shares without first selling them for cash.

The timing is particularly notable for Zcash, whose NU7 network upgrade introduced faster target block times even as ETF demand remained volatile.