Key Takeaways
- • Zcash (ZEC) spot ETFs led all crypto products with $98.2 million in inflows for the week ending September 18, marking the strongest performance among 14 tracked crypto ETF complexes, while Ethereum posted the only net outflow at $140 million.
- • Bitcoin ETFs experienced extreme volatility, losing $450.33 million on Tuesday following Senate rejection of the Digital Asset Market CLARITY Act (49-50 vote) and another $295.98 million on Wednesday after a 25 basis point Fed rate increase, before recovering $433.03 million on Friday to post a minimal weekly gain of $6.2 million—the smallest absolute figure in 141 weeks of trading.
- • The newly launched Zcash ETF (opened late August) has accumulated $271 million in inflows over four consecutive positive weeks, with assets now totaling $914.5 million and representing 32.5% of all spot crypto ETF trading volume at $11.42 billion, making it the third-largest altcoin ETF behind XRP and Solana.
- • Ethereum funds sustained three consecutive days of outflows totaling $404.82 million before a partial recovery of $143.80 million on Friday, indicating sustained institutional investor caution toward the largest altcoin despite broader market participation.
- • Solana extended its positive streak to 12 consecutive weeks with $13.2 million in weekly inflows, while XRP added $9 million, demonstrating sustained institutional interest in established altcoins.
Summary
Zcash spot exchange-traded funds emerged as the clear winner in crypto ETF capital flows for the week ending September 18, attracting $98.2 million and outpacing both Bitcoin and Ethereum products across a volatile trading period marked by significant policy headwinds. The Zcash complex's outperformance is particularly notable given that Ethereum funds posted the only net outflow among the 14 tracked crypto ETF products, recording $140 million in redemptions for the week.
The week opened with modest strength across major crypto ETF complexes, with Bitcoin ETFs taking in $160.04 million on Monday and Ethereum products adding $121.02 million. This momentum reversed sharply on Tuesday when the Senate rejected cloture on the Digital Asset Market CLARITY Act by a 49-50 vote, triggering severe risk-off positioning. Bitcoin funds experienced their worst single session of the week, losing $450.33 million. Policy uncertainty intensified on Wednesday when the Federal Reserve raised rates by 25 basis points to a range of 3.75% to 4%—its first increase since 2023—prompting additional capital outflows. Bitcoin shed $295.98 million and Ethereum lost $224.11 million on that session.
Recovery dynamics diverged significantly between the two largest crypto ETF complexes. Bitcoin funds rebounded strongly on Thursday and pulled in $433.03 million on Friday, ultimately recovering the $746.31 million lost across the two policy shock days. This recovery enabled Bitcoin ETFs to post a marginal weekly gain of $6.2 million—described as the smallest absolute figure in 141 weeks of continuous trading and signaling underlying institutional hesitation despite tactical relief rallies. Ethereum took a longer path to stabilize, with outflows persisting across three consecutive sessions totaling $404.82 million before a partial recovery of $143.80 million on Friday proved insufficient to offset the damage.
In contrast, Zcash has demonstrated exceptional momentum since its launch in late August, posting four consecutive positive weeks with cumulative inflows of $271 million. Assets in the Zcash complex jumped 40.5% last week alone to reach $914.5 million, establishing it as the third-largest altcoin ETF behind XRP and Solana. The fund captured substantial trading activity, with $11.42 billion in weekly volume representing 32.5% of all spot crypto ETF turnover—a remarkable concentration for a fund four weeks into operation. Solana extended its established strength with a 12-week positive streak, adding $13.2 million for the period, while XRP contributed $9 million in inflows.
The week opened with modest strength across major crypto ETF complexes, with Bitcoin ETFs taking in $160.04 million on Monday and Ethereum products adding $121.02 million. This momentum reversed sharply on Tuesday when the Senate rejected cloture on the Digital Asset Market CLARITY Act by a 49-50 vote, triggering severe risk-off positioning. Bitcoin funds experienced their worst single session of the week, losing $450.33 million. Policy uncertainty intensified on Wednesday when the Federal Reserve raised rates by 25 basis points to a range of 3.75% to 4%—its first increase since 2023—prompting additional capital outflows. Bitcoin shed $295.98 million and Ethereum lost $224.11 million on that session.
Recovery dynamics diverged significantly between the two largest crypto ETF complexes. Bitcoin funds rebounded strongly on Thursday and pulled in $433.03 million on Friday, ultimately recovering the $746.31 million lost across the two policy shock days. This recovery enabled Bitcoin ETFs to post a marginal weekly gain of $6.2 million—described as the smallest absolute figure in 141 weeks of continuous trading and signaling underlying institutional hesitation despite tactical relief rallies. Ethereum took a longer path to stabilize, with outflows persisting across three consecutive sessions totaling $404.82 million before a partial recovery of $143.80 million on Friday proved insufficient to offset the damage.
In contrast, Zcash has demonstrated exceptional momentum since its launch in late August, posting four consecutive positive weeks with cumulative inflows of $271 million. Assets in the Zcash complex jumped 40.5% last week alone to reach $914.5 million, establishing it as the third-largest altcoin ETF behind XRP and Solana. The fund captured substantial trading activity, with $11.42 billion in weekly volume representing 32.5% of all spot crypto ETF turnover—a remarkable concentration for a fund four weeks into operation. Solana extended its established strength with a 12-week positive streak, adding $13.2 million for the period, while XRP contributed $9 million in inflows.
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