Spot $ZEC ETFs are facing sustained selling pressure in early October, with net outflows approaching $59 million in just the first few days of the month and no positive flow days recorded sin
Spot $ZEC ETFs are facing sustained selling pressure in early October, with net outflows approaching $59 million in just the first few days of the month and no positive flow days recorded since September 22.
The Grayscale Zcash ETF (ZCSH) launched on NYSE Arca on August 25, 2026, quickly drawing significant institutional interest. By September 8, ZCSH had grown its assets under management to more than $500 million, just two weeks after its NYSE Arca debut. The fund attracted further firepower when DCG International Investments acquired ZCSH shares worth approximately $100 million, completing the transaction through an Authorized Participant in exchange for 85,705 ZEC tokens. At its peak, ETF assets approached the $1 billion mark in late September.
The momentum, however, did not hold. Grayscale's ZCSH recorded $93.56 million in outflows over a single week as of early October 2026.Redemptions accelerated sharply, with daily outflows reaching $30.25 million on September 30 and $26.93 million on October 2.Assets under management declined from $979 million to $751 million by early October.
The four-day streak of major net outflows in October follows a broader pattern that began in late September. According to @BSCNews, spot Zcash ETFs have not recorded a single day of positive activity since September 22, with losses now totalling close to $59 million for the month.
Institutional demand for Zcash has weakened materially, with ZCSH recording $28.26 million in net outflows on October 1 alone.The fund, which once held nearly 3.5% of the total ZEC supply, is transitioning from a buyer to a potential source of selling pressure in the market.
Whether the outflows represent profit-taking after a strong post-launch rally or a more fundamental shift in sentiment around privacy-focused assets remains to be seen. Large withdrawals from ETFs can occur for several reasons, including investors taking profits, reducing exposure, rebalancing portfolios, or rotating into other assets. The flow data alone does not point to a single cause.
What is clear is that the initial enthusiasm that carried ZCSH to nearly $1 billion in AUM has cooled considerably. With no positive flow days in over two weeks, traders and investors will be watching closely for any sign of stabilisation.
Sources:KuCoin: Grayscale Zcash ETF Records $93.56 Million Outflow in One WeekSEC Filing: The Zcash ETF Grows AUM to More Than $500 Million (Form 8-K, September 2026)CoinMarketCap: Latest Zcash (ZEC) Price Analysis
