Zcash ETF Sees $93.6M Exit as ZEC Price Drops 23%

The Zcash ETF, ZCSH, experienced a significant outflow of funds, totaling $93.56 million, for the week ending October 2. This marks the first negative week for the ETF since late August. The decline in assets was partly due to the drop in the price of ZEC, which closed near $1,304 on October 3, a 23% decrease from its peak in late September.

The ETF's net assets fell to approximately $751 million, while cumulative net inflows remained positive at around $212.56 million. The outflow is a reversal of the strong demand seen during the fund's first weeks of trading on the NYSE Arca. ZCSH had grown quickly after its August listing, reaching over $1 billion in assets by late September, fueled by ZEC's price surge of over 102% in the preceding month.

The latest asset decline should not be attributed solely to withdrawals, as changes in the token's market price can also impact the fund's value. The Zcash price has fallen back toward $1,300, and its perpetual open interest on OKX declined from $236.8 million on September 18 to $165 million on September 28, indicating reduced leveraged positions.