Zcash ETF Investors Pull $93.6M as ZEC Rally Cools

The outflows mark the first negative week for the ZCSH fund since late August, snapping a streak of strong demand that had propelled total net assets past the $1 billion mark earlier in the month. Daily redemption pressure accelerated toward the end of September, with SoSoValue data detailing $30.25 million in exits on September 30 and an additional $26.93 million on October 2. Despite this retreat, cumulative net inflows for the fund remain positive at approximately $212.56 million.

ZEC’s price action correlates with the cooling investor interest. After peaking above $1,650 in late September, the token slumped to $1,304 by October 3. Market analysts point to a confluence of factors beyond ETF redemptions, including a broader decline in leveraged positions and profit-taking following a 102% monthly rally. On-chain data confirms that ZEC perpetual open interest on OKX dropped significantly, from $236.8 million to $165 million between September 18 and September 28.

Amid the volatility, Grayscale finalized a three-for-one share split on September 30, adjusting the share count from roughly 7.99 million to 23.97 million without altering the total value of investor holdings. Looking ahead, the focus shifts to network development as the Zcash Foundation prepares for the NU7 upgrade. Scheduled for a potential mainnet launch on November 5, the update aims to reduce target block times from 75 seconds to 25 seconds and implement new anti-spam measures for shielded transactions.