Key Takeaways
- • Grayscale's ZCSH spot Zcash ETF recorded a $93.56 million weekly outflow, marking its first week of significant redemptions since launching on NYSE Arca on August 25, 2026.
- • Assets under management collapsed from a September peak of approximately $915–979 million to around $751 million by early October, erasing roughly 23% of peak value.
- • Despite the recent outflow, the fund remains net positive since launch, with cumulative net inflows of $212.56 million as of early October, down from $268 million at their height.
- • The ETF saw peak inflows of $98.2 million during the week ending September 18, 2026, when it commanded up to 32.5% of all spot crypto ETF turnover and held approximately 3.5% of total ZEC supply.
- • Single-day redemptions accelerated in late September and early October, with $30.25 million exiting on September 30 and $26.93 million on October 2, signaling a shift from the strong inflow momentum that characterized the fund's first month.
Summary
Grayscale's ZCSH, the first US-listed spot Zcash exchange-traded fund, experienced its most severe week of outflows since its August 25, 2026 debut, shedding $93.56 million in redemptions. The fund, which converted from the existing Grayscale Zcash Trust, provides direct exposure to Zcash (ZEC) tokens rather than futures contracts. The weekly outflow represents a sharp reversal of fortunes for what had been a strong market entry.
The fund's trajectory illustrates typical crypto ETF volatility patterns. ZCSH attracted $271 million in cumulative net inflows by mid-September, with the strongest week ending September 18 generating $98.2 million in fresh capital. At its peak, the fund accounted for as much as 32.5% of all spot crypto ETF turnover and held roughly 3.5% of the total ZEC supply. Assets under management reached approximately $915–979 million in September before declining to around $751 million by early October.
The reversal accelerated through late September and early October, with individual trading days registering redemptions in the $26–30 million range. On September 30 alone, the fund recorded a $30.25 million outflow, followed by $26.93 million on October 2. These successive daily redemptions reduced cumulative net inflows from approximately $268 million to $212.56 million over this period. Despite the recent headwinds, the fund remains in positive territory since its August launch, though the momentum shift underscores the challenge of maintaining investor interest in single-asset crypto ETF products during periods of price consolidation or broader market uncertainty.
The fund's trajectory illustrates typical crypto ETF volatility patterns. ZCSH attracted $271 million in cumulative net inflows by mid-September, with the strongest week ending September 18 generating $98.2 million in fresh capital. At its peak, the fund accounted for as much as 32.5% of all spot crypto ETF turnover and held roughly 3.5% of the total ZEC supply. Assets under management reached approximately $915–979 million in September before declining to around $751 million by early October.
The reversal accelerated through late September and early October, with individual trading days registering redemptions in the $26–30 million range. On September 30 alone, the fund recorded a $30.25 million outflow, followed by $26.93 million on October 2. These successive daily redemptions reduced cumulative net inflows from approximately $268 million to $212.56 million over this period. Despite the recent headwinds, the fund remains in positive territory since its August launch, though the momentum shift underscores the challenge of maintaining investor interest in single-asset crypto ETF products during periods of price consolidation or broader market uncertainty.
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