The Grayscale Zcash ETF recorded $93.56 million in net outflows over the past week, its largest weekly withdrawal since the fund began trading on NYSE Arca. The fund recorded $30.25 million in outflows on September 30 and another $26.93 million on October 2, extending a period of weaker exchange-traded fund demand for ZEC.

Grayscale Zcash ETF reverses early inflow trend

The ZCSH fund began trading on August 25 on NYSE Arca, a primary US venue for exchange-traded products, after Grayscale converted the Grayscale Zcash Trust into an exchange-traded product. The structure provides exposure to ZEC through shares representing interests in a trust that holds the cryptocurrency, rather than through futures contracts. Grayscale used the same conversion route for its bitcoin and ethereum trusts, which began trading as spot exchange-traded funds on US exchanges in January and July 2024, respectively.

The Grayscale Zcash ETF attracted substantial interest soon after its launch. Inflows had reached $271 million by mid-September, while the fund’s asset value increased significantly during its first few weeks of trading.

The latest weekly data marks a sharp change from that initial flow trend. ZCSH recorded a $30.25 million redemption on September 30, followed by a further $26.93 million withdrawal on October 2. Flow figures also showed significant redemptions on other days in late September and early October.

🚨 BREAKING 🚨 Grayscale’s ETF clients sold $26.93 million worth of $ZEC today. They’ve now sold Zcash for three consecutive days. pic.twitter.com/nDNAw0VN97 — TMA | The Money Ape (@TheMoneyApe) October 3, 2026

The recent withdrawals reduced the fund’s accumulated net-inflow cushion. Based on the figures provided, total net inflows now stand at approximately $212.56 million, down from about $268 million in the previous period. Net-inflow totals combine daily creations and redemptions since launch, so a positive balance indicates the fund has taken in more than it has paid out to date. Despite the recent change in direction, ZCSH remains net positive since its launch in August.

The shift is notable because the fund reached considerable scale within a short period. According to Grayscale, ZCSH had surpassed $500 million in assets under management by September 8, alongside significant inflows during its first two weeks of trading.

ZEC trades below previous rally levels

The ETF outflows have emerged as ZEC trades below the levels reached during its previous upward move. Crypto With Gopal said ZEC was trading at $1,316 and forming a falling-wedge pattern on the four-hour chart. Following the previous pullback, price action has moved between descending resistance and support levels.

The technical formation has narrowed as ZEC entered a consolidation phase. Gopal identified $1,700 as an upside level and said that a break above the upper resistance could support the momentum formation. The analysis provides additional context for the recent decline in ETF flows.

The relationship between ETF flows and the underlying asset is also relevant. Because ZCSH gives holders exposure to ZEC held by the trust, fund flows affect the amount of cryptocurrency associated with the ETF. However, ETF outflows do not establish why investors sold their assets.

Zcash network activity remains mixed

On-chain data provides another view of activity connected to Zcash. The network launched in 2016, and its zero-knowledge cryptography lets users transact through shielded transactions that keep details such as sender, recipient and amount off the public ledger, alongside transparent transactions that record them openly. Data from October 2 showed 7,113 finalized transactions, including 4,445 transparent-only transactions, 795 shielded-only transactions and 1,873 mixed transactions. Shielded transactions accounted for 2,668 transactions, or 37.5% of the total.

Pool-level data showed that 2,458 transactions touched the Ironwood pool on October 2. Sapling recorded 192 transactions, while Orchard recorded 92. These figures represent transaction volume rather than the amount of ZEC held in each pool. They therefore indicate network usage but do not directly represent investment demand. The activity data is available at zeczcash.com/activity.

The network figures also indicate that Zcash activity extends beyond the ETF market. Transactions can use transparent or shielded structures, while exchange-traded fund flows measure a separate aspect of the ecosystem. Network activity and ETF flows therefore should not be treated as identical indicators.

ZCSH enters October after a stock split

Grayscale also completed a 3-for-1 forward stock split of ZCSH on September 30. According to the source, the action doubled the number of shares while reducing the price per share to preserve the same investment value. Split-adjusted trading began on NYSE Arca after the SEC filing. Because the split changed the share count, per-share figures published before September 30 are not directly comparable with later data without adjustment.

The Grayscale Zcash ETF enters October with positive net flows, although they are substantially below the fund’s mid-September peak. ZEC, meanwhile, continues to consolidate around the $1,300 level after its recent consolidation. Upcoming flow data and price action around the falling-wedge pattern will provide additional information about the fund and the underlying asset.

For those monitoring ZCSH, the key development is the contrast between its strong launch period and its recent withdrawals. The $93.56 million weekly net outflow alone does not establish a permanent change in investor interest, but it represents a short-term shift that can be assessed alongside ZEC’s price and further ETF-flow data.

The original source is Tron Weekly.