Zcash ETFs Have Lost $59 Million in October While the Coin Keeps Climbing. What Are the Investors Noticing?

• The ETF saw daily outflows during the first four trading days of October with no new investments since September 22, reducing net inflows from $268 million to $209 million since the August 25 launch
• Despite ETF selling pressure, Zcash rose 11% in October and trades at $1,367 with a $23 billion market cap, though it remains 57% below its October 2016 all-time high
• The Winklevoss twins announced plans to launch a second Zcash ETF on October 6, while other crypto ETFs like Bitcoin and XRP continued attracting capital, suggesting the outflows reflect profit-taking specific to ZEC rather than broader crypto fund exits

Summary: Zcash ETF Outflows Amid Rising Coin Price

Key Facts and Figures

Grayscale's Zcash ETF (ticker: ZCSH) experienced approximately $59 million in outflows during October 2026, with redemptions occurring on each of the first four trading days of the month. The fund had no new investments since September 22, 2026. Despite these outflows, Zcash (ZEC) has shown strong price performance:

• Current price: $1,367 (up 2% daily, 11% monthly)
• Year-over-year gain: 768%
• Market capitalization: Nearly $23 billion
• Peak price in late September: $1,698 (current price ~20% below peak)

Fund Performance and Context

The ETF, launched August 25, 2026, held approximately $876 million at end-September. October's $59 million outflow represents roughly 7% of total fund assets and about one-fifth of the original $268 million in net inflows since launch. After outflows, net inflows stand at approximately $209 million.

Market Implications

The disconnect between ETF outflows and rising ZEC prices suggests strong demand from buyers outside traditional brokerage channels, including:

• Crypto exchange traders
• Companies like Nasdaq-listed Cypherpunk Technologies holding ZEC on balance sheets
• The Winklevoss twins' fund planning a second Zcash ETF

Analysts interpret the outflows as profit-taking rather than abandonment, particularly given ZEC's substantial yearly gains. The coin remains 57% below its October 2016 all-time high.

This contrasts with other crypto ETFs: Bitcoin ETFs attracted $6.3 billion in Q3 2026, while XRP ETFs saw inflows in late September, suggesting the Zcash outflows reflect asset-specific investor behavior rather than broader crypto exit trends.