Grayscale's Zcash ETF Bleeds Over $124M in Two Weeks Demand for @Grayscale's spot @Zcash ETF (NYSE: ZCSH) has deteriorated sharply. The fund has now recorded seven consecutive days of net out
Demand for @Grayscale's spot @Zcash ETF (NYSE: ZCSH) has deteriorated sharply. The fund has now recorded seven consecutive days of net outflows, with total redemptions exceeding $124M over the past two weeks, raising fresh questions about the staying power of the $ZEC rally that drew investors in earlier this year.
The slide follows a brief but striking surge in institutional appetite. ZCSH launched on NYSE Arca on August 25, 2026, converted from the existing Grayscale Zcash Trust, becoming the first listed spot ETF in the United States to offer direct exposure to ZEC tokens. By mid-September, cumulative net inflows had reached $271M, with the busiest week ending September 18 drawing in $98.2M alone.
The reversal has been swift. On September 30, the fund recorded a single-day redemption of $30.25M, followed by another $26.93M leaving on October 2. Assets under management, which peaked at roughly $915M to $979M in September, had fallen to around $751M by early October.
Despite the outflows, @Grayscale's fund still holds 3.27% of $ZEC's total circulating supply, meaning its redemption activity carries real market weight. As a spot ETF, ZCSH holds actual ZEC coins behind its shares. When selling outpaces buying, the fund must redeem shares, prompting Grayscale to sell some of its ZEC to pay investors cashing out. This selling pressure can affect ZEC's price because each coin the fund sells increases the supply available on exchanges.
The persistent redemptions followed the fund's 3-for-1 stock split, which coincided with a fresh wave of institutional selling pressure. $ZEC has slipped more than 22% from last month's high of $1,689. For ETF holders, there are plausible reasons to sell: after reaching around $1,698 in late September, investors who bought in during the uptrend may simply be choosing to lock in gains.
For Grayscale, the picture is mixed rather than dire. The fund still holds around $751M in assets and remains net positive at $212.56M in cumulative inflows since launch. Whether demand stabilises or continues to erode will likely depend on broader sentiment toward privacy-focused assets and whether $ZEC can reclaim lost ground.
Sources:Crypto Briefing: Grayscale's Zcash ETF sheds $93.56 million in a single weekInvezz: Zcash gets a new ETF filing as Grayscale bleeds $105M24/7 Wall St: Zcash ETFs Have Lost $59 Million in October
