For regular users reading this news, the focus shouldn’t be on the figure “$93.6 million.” Instead, it should be on three more practical things: the fee rate, the stock split, and “who is selling.”
Let’s lay out the facts clearly: Grayscale ZCSH is the first U.S. spot Zcash ETF. It began trading on the NYSE Arca on August 25, converted from the existing Zcash trust. The launch was genuinely strong—by mid-September, it had accumulated net inflows of $271 million. Its best week (through September 18) saw weekly inflows of $98.2 million, leading all crypto ETFs. At its peak, it accounted for 32.5% of all spot crypto ETF trading volume by itself, holding roughly 3.5% of the total supply of $ZEC .
Then the tone shifted. This week, it recorded net outflows of about $93.56 million, the first weekly net outflow since listing. Cumulative net inflows dropped from about $268 million to $212.56 million—wiping out roughly 30% in one go. AUM fell from above $900 million at the September peak to $751 million. Since September 22, there has been no day with net inflows.
What I think you should really be wary of is “concentration.” If an ETF holding 3.5% of the total supply is redeeming, that ETF itself becomes the biggest marginal sell pressure. This is completely different from the “volume dilution” structure seen in Bitcoin ETFs. With ZEC being a smaller market, the ETF’s inflows and outflows are part of the price action itself.
Two actionable things to watch: First, the 2.5% fee rate is relatively high among comparable spot products, so the friction costs for long-term holding should be factored into your position decisions. Second, the 1-for-3 stock split effective on September 30 happens to coincide with the same day as the $30.2 million outflow. To determine whether the selloff was caused by the split-induced rebalancing or reflects a genuine exit, you’ll need to look at day-by-day data over the next week or two.
Are you more concerned that the support at 1,270 to 1,300 may not hold? Or do you think liquidity after the split will come first to rescue the market?
#Zcash spot ETF records its first weekly net outflow of $93.6 million
Let’s lay out the facts clearly: Grayscale ZCSH is the first U.S. spot Zcash ETF. It began trading on the NYSE Arca on August 25, converted from the existing Zcash trust. The launch was genuinely strong—by mid-September, it had accumulated net inflows of $271 million. Its best week (through September 18) saw weekly inflows of $98.2 million, leading all crypto ETFs. At its peak, it accounted for 32.5% of all spot crypto ETF trading volume by itself, holding roughly 3.5% of the total supply of $ZEC .
Then the tone shifted. This week, it recorded net outflows of about $93.56 million, the first weekly net outflow since listing. Cumulative net inflows dropped from about $268 million to $212.56 million—wiping out roughly 30% in one go. AUM fell from above $900 million at the September peak to $751 million. Since September 22, there has been no day with net inflows.
What I think you should really be wary of is “concentration.” If an ETF holding 3.5% of the total supply is redeeming, that ETF itself becomes the biggest marginal sell pressure. This is completely different from the “volume dilution” structure seen in Bitcoin ETFs. With ZEC being a smaller market, the ETF’s inflows and outflows are part of the price action itself.
Two actionable things to watch: First, the 2.5% fee rate is relatively high among comparable spot products, so the friction costs for long-term holding should be factored into your position decisions. Second, the 1-for-3 stock split effective on September 30 happens to coincide with the same day as the $30.2 million outflow. To determine whether the selloff was caused by the split-induced rebalancing or reflects a genuine exit, you’ll need to look at day-by-day data over the next week or two.
Are you more concerned that the support at 1,270 to 1,300 may not hold? Or do you think liquidity after the split will come first to rescue the market?
#Zcash spot ETF records its first weekly net outflow of $93.6 million