Grayscale's Zcash ETF, ZCSH, recorded $93.56 million in net outflows for the week ended Oct. 2, its first negative week since late August. The withdrawals coincided with ZEC's drop to $1,304.32 by Oct. 3, roughly 21% below its Sept. 26 close. Grayscale also completed a three-for-one share split on Sept. 30, the same day the fund posted its daily outflow.
Grayscale's spot Zcash ETF, ZCSH, posted $93.56 million in net outflows for the week ended Oct. 2, marking its first negative week since late August. The reversal followed weeks of strong demand after the fund's August launch, and it arrived as ZEC pulled back to well below its September highs.
ZCSH records first weekly outflow since August
Daily redemptions accelerated into the end of September. SoSoValue data showed $30.25 million leaving ZCSH on Sept. 30, followed by another $26.93 million on Oct. 2. Combined with outflows on other sessions, the fund's weekly net outflows reached $93.56 million, while total net assets fell to approximately $751 million. Despite the pullback, cumulative net inflows since launch remained positive at around $212.56 million.
ZCSH had grown quickly after converting from Grayscale's Zcash Trust on Aug. 25. The fund launched with approximately $304 million in assets before crossing $1 billion in assets by late September as ZEC prices and investor demand increased. The latest asset decline should not be treated as entirely caused by withdrawals, however — because ZCSH holds ZEC directly, swings in the token's market price also move the dollar value of the fund's holdings.
ZEC falls 21% from its September peak
ZEC's pullback took the token well below its September highs. CoinGecko data showed the token closing at $1,653.12 on Sept. 26 before dropping to $1,483.24 on Sept. 28, then $1,438.21 on Sept. 30 and $1,301.16 on Oct. 2. ZEC closed Oct. 3 at $1,304.32, a decline of roughly 21% from its Sept. 26 close.
The drop also followed a reduction in leveraged positions. OKX perpetual open interest in ZEC fell from $236.8 million on Sept. 18 to $165 million on Sept. 28, while the token's RSI eased to 53.41 after stronger momentum earlier in the rally. ETF redemptions occurred during the same period, but available data does not establish that leverage unwinding or withdrawals caused the entire decline — falling open interest and profit-taking after September's rally were occurring alongside the ETF flows.
Grayscale splits ZCSH shares as outflows mount
Grayscale completed a three-for-one forward split of ZCSH shares on Sept. 30, the same day the fund recorded its $30.25 million daily outflow. According to a Sept. 30 SEC filing, shares outstanding rose from 7,989,300 to 23,967,900 while net asset value per share fell from $111.41 to $37.14 — a mechanical adjustment that left investor holdings unchanged in value.
Grayscale also disclosed that Digital Currency Group invested roughly $100 million into ZCSH on Sept. 8, acquiring shares through an authorized participant in exchange for 85,705.32563297 ZEC.
Source: crypto.news
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