Grayscale's Zcash (ZEC) ETF Logs $30.25M Net Outflow on Sept. 30

Redemption Wave Hits Grayscale's ZCSH

Grayscale's spot Zcash exchange-traded fund, ticker ZCSH, recorded a $30.25 million net outflow on September 30, its sharpest one-day reversal since the fund debuted on August 25. The redemption trimmed cumulative net inflows to roughly $268 million, down from a $233 million haul by mid-September and continued buying after. ZCSH's 3-for-1 share split took effect the same morning, an issuer move built to lower the per-share entry point for smaller buyers; the split itself is cosmetic and leaves the fund's exposure unchanged. Grayscale, which separately filed a Zcash High Income ETF with the SEC for a 75-day review window, is now watching its flagship Zcash product absorb its first sustained redemption pressure, and the print landed with about three hours left before Thursday's daily candle closed.

The flows arrived as the token itself cooled. Zcash (ZEC) price sits near $1,330 at the time of writing, about 7% lower over 24 hours and roughly 21% below the $1,698 peak it printed in late September. That peak capped a run of about 253% from a $480.72 base, one of the strongest advances among large-cap privacy assets this year, and the pullback has surrendered about a fifth of it. The macro backdrop offered no cushion. Bitcoin's brief spike to $85,600 on Wednesday, triggered by softer-than-expected PCE inflation data, was handed back within hours. The 10-year Treasury yield closed at 5.29% per the Fed's H.15 yield release, and CME FedWatch now prices an October Federal Reserve rate hike below a coin flip, down from roughly 70% earlier in the week. Risk appetite across altcoins thinned with it.

Bitget Breach Funds Reach the Shielded Pool

The heavier overhang comes from a security breach with no direct link to Zcash's fundamentals. On September 24, hackers drained roughly $387 million from Bitget, an estimate revised upward from an initial $351.6 million once transfers across the Zcash and Tron blockchains were fully counted. Bitget's chief executive has said the attack pattern is consistent with North Korean hacker groups, though formal attribution remains pending. On Wednesday, on-chain investigator ZachXBT flagged 2,746 ZEC, worth about $3.9 million, moving from hack-linked crypto wallet addresses into Zcash's shielded pool, where senders, receivers and amounts are hidden from public view. Our separate tracking of the same addresses shows the funds shielded in the Ironwood pool within hours of the flag. The sum is small against the breach itself and did not mechanically force the token lower, but laundering through a privacy chain is poor optics for an asset courting institutional flows. Zcash's privacy guarantees rest on cryptography first proven in the Zcash Ceremony, the multi-party trusted setup from 2016, a design privacy advocates defend and compliance desks scrutinize in equal measure.

The market has absorbed worse. In June, a critical vulnerability disclosure in the shielded pool sent ZEC from $635 to an intraday low of $309, a drawdown of about 51%. The coin recovered from that low, climbed past $1,600 and went on to print $1,698 in September. Trend structure still backs the recovery case: the 50-day exponential moving average holds above the 200-day, and the Average Directional Index reads 52.0, a reading that confirms a strong trend even though it lags the recent swing. For a token whose 2026 story has been institutional adoption through ETF wrappers, the hack linkage lands at a sensitive moment.

$1,659 Resistance in Focus

COINOTAG's proprietary 42-indicator composite S/R scoring engine frames the map from here. The $1,659 resistance scores 64/100 on confluence from the Keltner Upper band, the Donchian Upper channel and the late-September swing high, with a nearer shelf at $1,493 rated 59/100. Below, the strongest support sits at $902.57 with a 70/100 score, driven by the Fibo 0.618 retracement and the 100-day EMA and SMA cluster. The composite MACD signal is bearish and RSI at 50.02 sits dead neutral, yet the broader trend reading remains an uptrend. Perp funding of 0.0031% against $801.6 million in open interest shows leveraged longs still paying to hold. A close below $1,128.5 would invalidate the recovery thesis; a reclaim of $1,493 reopens $1,659. With Fear & Greed at 74 (Greed), positioning still leans toward the crowd.