Grayscale Zcash ETF Sees $93.56 Million Outflow in Single Week

The Grayscale Zcash ETF, ZCSH, has experienced its roughest week since launch, losing $93.56 million in a single week due to outflows. The fund, which debuted on August 25, 2026, as the first US-listed spot exchange-traded fund offering direct exposure to ZEC tokens, has seen a significant decline in assets under management. From its peak of $915-979 million in September, AUM has fallen to around $751 million.

The fund's net inflows have dropped from around $268 million to $212.56 million over this period. This comes after a strong opening period, during which cumulative net inflows hit $271 million by mid-September and the fund saw a single-day redemption of $30.25 million on September 30. The fund's 2.5% expense ratio may also be a contributing factor, as holders pay that percentage of their investment each year to own it.

The share split, announced on September 18, 2026, and implemented on September 30, may have been poorly timed, as shares started trading on a split-adjusted basis on the same day the fund posted its $30.25 million outflow. The fund's performance has implications for ZEC's price, as the fund's inflows and outflows directly impact the token's supply and demand.