Grayscale's ZCSH, the first US spot Zcash exchange-traded fund, lost $93.56 million to outflows over a single week. Assets under management have fallen from a September peak of approximately $915-979 million to around $751 million, even as the fund remains net positive since its August launch.
Grayscale's ZCSH just had its roughest week yet. The fund lost $93.56 million to outflows over a single week, reversing a chunk of the gains it built in its first month on the market.
From launch-week darling to redemption queue
ZCSH debuted on NYSE Arca on August 25, 2026, converted from the existing Grayscale Zcash Trust. It became the first US-listed spot ETF offering direct exposure to ZEC tokens, meaning it holds the actual asset rather than futures contracts tied to it.
The opening act was strong. Cumulative net inflows hit $271 million by mid-September, with the best stretch coming in the week ending September 18, 2026, when $98.2 million in fresh money arrived. In its strongest week, the fund accounted for up to 32.5% of all spot crypto ETF turnover and held roughly 3.5% of the total ZEC supply at its peak.
The numbers behind the retreat
But the slide shows up clearly in the daily data. On September 30, the fund recorded a single-day redemption of $30.25 million. On October 2, another $26.93 million left. Several trading days saw redemptions in the $26-30 million range during late September and early October.
As a result, cumulative net inflows dropped from around $268 million to $212.56 million over this period. Assets under management peaked at approximately $915-979 million in September before falling to around $751 million by early October. ZEC's price swung widely after the ETF's debut, initially pushing past $1,500 before settling at lower levels.
A stock split and a hefty fee
Grayscale has made at least one move to keep trading smooth. On September 18, 2026, it announced a 3-for-1 forward share split for ZCSH, with a record date of September 28 and shares trading on the adjusted basis from September 30 — the same day the fund posted its $30.25 million outflow. ZCSH carries a 2.5% expense ratio, meaning holders pay that percentage of their investment each year to own it.
A fund that once held roughly 3.5% of ZEC's supply is now a meaningful source of supply and demand pressure for the token: when ZCSH sees inflows, it needs to hold more ZEC, and when it sees redemptions, that relationship runs the other way. For Grayscale, the picture is mixed rather than grim. The fund still holds around $751 million in assets and remains net positive at $212.56 million in cumulative inflows.
Source: Crypto Briefing
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