#ZEC spot ETF records its first weekly net outflow as the NU7 upgrade continues to move forward
ZEC is entering a critical period of uncertainty.
As of October 2, Grayscale ZCSH recorded net outflows of approximately $93.56 million, marking the first weekly net outflow since its launch. Meanwhile, ZEC has fallen from its September high of around $1,690 to near $1,300, and signs of institutional profit-taking are beginning to emerge.
However, ETF outflows don't necessarily mean the rally is over. The NU7 upgrade continues to provide a fresh fundamental catalyst.
NU7 is now live on the public testnet, with the target block time reduced from 75 seconds to 25 seconds. A decision on mainnet activation is planned by October 20, with the mainnet launch tentatively scheduled for November 5.
In the short term, ETF fund flows are bearish and may put some pressure on a ZEC rebound. In the long term, the outlook still depends on whether NU7 can successfully complete the mainnet upgrade, and whether improved network efficiency can generate real usage demand.
There are two potential transmission paths:
Sustained ETF outflows → lower institutional demand → increased selling pressure → pressure on a ZEC rebound.
Successful NU7 testing → improved network efficiency → stronger privacy payments narrative → rising expectations for the mainnet launch → funds flow back in.
So it's not wise to turn bearish based solely on ETF outflows, nor to blindly chase a rally just because of the NU7 upgrade. Testnet activation does not mean the mainnet upgrade will succeed, much less guarantee that the price will rise.
In the short term, watch support near $1,300 and whether ETF outflows can stop. If ZEC holds above $1,300, ETF flows turn positive again, and NU7 stays on schedule, ZEC could rebound once the negative news has been priced in.
Conversely, if ETF outflows continue at a large scale and ZEC breaks below $1,300, be alert to further profit-taking.
In my view, the key question for ZEC's next phase isn't whether there is positive news, but whether expectations for the upgrade can offset the funds currently exiting. Do you think this is a routine shakeout or the beginning of a new correction? Share your thoughts in the comments.
$ZEC
ZEC is entering a critical period of uncertainty.
As of October 2, Grayscale ZCSH recorded net outflows of approximately $93.56 million, marking the first weekly net outflow since its launch. Meanwhile, ZEC has fallen from its September high of around $1,690 to near $1,300, and signs of institutional profit-taking are beginning to emerge.
However, ETF outflows don't necessarily mean the rally is over. The NU7 upgrade continues to provide a fresh fundamental catalyst.
NU7 is now live on the public testnet, with the target block time reduced from 75 seconds to 25 seconds. A decision on mainnet activation is planned by October 20, with the mainnet launch tentatively scheduled for November 5.
In the short term, ETF fund flows are bearish and may put some pressure on a ZEC rebound. In the long term, the outlook still depends on whether NU7 can successfully complete the mainnet upgrade, and whether improved network efficiency can generate real usage demand.
There are two potential transmission paths:
Sustained ETF outflows → lower institutional demand → increased selling pressure → pressure on a ZEC rebound.
Successful NU7 testing → improved network efficiency → stronger privacy payments narrative → rising expectations for the mainnet launch → funds flow back in.
So it's not wise to turn bearish based solely on ETF outflows, nor to blindly chase a rally just because of the NU7 upgrade. Testnet activation does not mean the mainnet upgrade will succeed, much less guarantee that the price will rise.
In the short term, watch support near $1,300 and whether ETF outflows can stop. If ZEC holds above $1,300, ETF flows turn positive again, and NU7 stays on schedule, ZEC could rebound once the negative news has been priced in.
Conversely, if ETF outflows continue at a large scale and ZEC breaks below $1,300, be alert to further profit-taking.
In my view, the key question for ZEC's next phase isn't whether there is positive news, but whether expectations for the upgrade can offset the funds currently exiting. Do you think this is a routine shakeout or the beginning of a new correction? Share your thoughts in the comments.
$ZEC