Grayscale's Zcash (ZEC) ETF Sheds $93.6 Million in First Weekly Outflow

First Outflow Week for Grayscale's ZCSH

$93.6 million left the Grayscale Zcash (ZEC) ETF in the week that ended on Friday, October 2, the fund's first week of net outflows since its August launch. Grayscale's ZCSH vehicle took in new money on a daily net basis only through September 22; the daily flow tape shows not a single day of net inflows since that date. The Zcash price traded near $1,308 as of 13:45 UTC on Saturday, October 3, down 6.7% over the past 24 hours. The token has shed about 17.5% since the week opened and sits roughly 23% below its recent peak near $1,690. Redemption pressure does not account for the whole drop, but the direction is unambiguous: investors have declined to buy the dip through the fund, and another stretch of redemptions would extend that pressure into mid-October. Net flow, the weekly difference between share creations and redemptions, turned negative for the first time in the product's short life, so the August cohort of buyers has begun to unwind at a mark near $1,300. Redemptions do not mechanically force token sales, since in-kind structures move shares rather than coins, but they thin the demand base under a market already in retreat across the broader altcoin market. Weekend trading has been calm by comparison: the live spot sits about 0.4% below the level recorded when the weekly print was published at 12:28 UTC on Saturday, with no renewed selling wave since. No fresh weekly figure has been published for the session still in progress. Fund flow records are the cleanest public gauge of institutional demand for ZEC, and they now point down. A second consecutive week of outflows would move the vehicle from the sector's fastest-growing product to a net seller's ledger within a quarter of listing.

From $98.2 Million Lead to Reversal

Two weeks before the flip, the ZCSH fund drew $98.2 million in weekly inflows and ranked first among all crypto ETFs, an unusual position for a product in its first month. The ledger then turned: the fund posted a $30.25 million single-day net outflow on September 30, and the weekly total crossed into negative territory for the period that closed on October 2. Measured across the two prints, the flow balance swung by $191.8 million in fourteen days. No day has closed with positive net flow since September 22, which leaves the fund without a fresh-subscription session in the entire review period. On-chain activity points the other way. A whale address executed a 2,000 ZEC withdrawal from Binance into a self-custody wallet holding $66.19 million during the pullback, a pattern consistent with accumulation rather than distribution. Large withdrawals from centralized venues reduce coins available for immediate sale, a cushion the fund side does not provide. Grayscale has kept building the product line while the flagship fund bleeds. The firm filed for a Zcash High Income ETF, a proposed vehicle with biweekly payouts that now sits in a 75-day SEC review window, and the filing remains pending as of this week. Approval timing is not disclosed in the review schedule, and no decision date has been set. Flows, not price alone, now set the near-term tone for ZEC: until ZCSH prints a daily net inflow for the first time in eight trading sessions, the demand base that carried the token to $1,690 stays in retreat.

$1,103 Support Sets the Line

COINOTAG's proprietary 42-indicator composite support and resistance scoring engine rates the $1,630.17 resistance at 70/100 on Fibo 0.000 and Donchian Upper confluence, and the $1,103.31 support at 63/100 on Donchian Lower, Swing Low and Fibonacci 0.500, the strongest stand on the ZEC technical analysis map. Spot sits at $1,308 with RSI at 48.92, a bearish MACD and an uptrend label still standing. Positioning across contract trading is mildly positive: perpetual futures funding prints 0.0031% against $764 million in open interest. The bullish case holds while $1,244 (44/100) stands; a daily close below $1,103.31 invalidates it and exposes $876.08, where SMA 100 and the Ichimoku Cloud score 61/100. The Fear and Greed Index reads 67 of 100, a greed reading.