Grayscale Zcash ETF Attracts $41.1M Amid Bitcoin, Ethereum Fund Weakness

Grayscale’s Zcash ETF experienced its strongest week in over a month, a notable turnaround for a fund that had seen consistent outflows.

Strong Inflows Amidst Market Volatility

The Grayscale Zcash Trust (ZCSH) attracted $41.1 million in net inflows for the week ending October 23, 2026. This marks the fund’s highest weekly inflow since mid-September and occurred at a time when major cryptocurrency ETFs faced significant headwinds.

For a product that had experienced three consecutive weeks of net outflows, this surge in investor interest was particularly significant. The week began with a less promising start, as ZCSH recorded $10.4 million in outflows on October 19, continuing a recent trend.

However, the sentiment shifted dramatically. October 20 saw a modest $1.6 million in inflows, followed by stronger momentum midweek. The fund garnered $15.2 million on October 21 and an additional $14.2 million on October 22. The week culminated with the strongest day of inflows, reaching $20.5 million on October 23.

Cumulatively, these inflows resulted in the $41.1 million net figure. The pattern of the week—a negative opening followed by four days of positive inflows—suggests a building investor conviction rather than a single large transaction. This rebound followed a period where ZCSH had shed a combined $143 million in net outflows over the preceding three weeks, meaning last week’s gains recovered less than a third of that previous drawdown.

Broader ETF Market Performance

The performance of the Zcash ETF stood in contrast to the broader cryptocurrency ETF market. Bitcoin ETFs experienced outflows exceeding $500 million over a two-day span within the same period. Despite this, Bitcoin funds managed to close the week with a positive net flow of $301.2 million.

Ethereum ETFs did not fare as well, ending the week with net outflows totaling $220.7 million.

Zcash Token Performance and ETF Significance

Against this backdrop, the Zcash (ZEC) token itself traded near or above $1,200 during the week of strong inflows, representing a 7% increase. This occurred while both Bitcoin and Ethereum faced considerable market pressure.

Grayscale launched the ZCSH fund on August 25, 2026, listing it on NYSE Arca. As the first U.S. spot Zcash product, it offered mainstream brokerage account investors a regulated avenue to gain exposure to ZEC without directly engaging with cryptocurrency exchanges. The fund carries a management fee of 2.5%.

Since its inception, ZCSH has accumulated cumulative net inflows ranging from over $177 million to $270 million. As of late October 2026, the fund’s assets under management were approximately $686 million. It holds between 537,954 and 560,771 ZEC, representing more than 3% of the token’s circulating supply.

Investor Optimism and Future Implications

Analysis of these figures suggests that the recent inflows may indicate growing optimism surrounding Zcash, particularly within a volatile market. One interpretation is that investors are increasingly seeking assets with distinct value propositions, such as privacy features, rather than solely increasing their exposure to Bitcoin or Ethereum.

Grayscale has successfully built ZCSH into a product managing roughly $686 million, despite its 2.5% fee.

For ZEC holders, the fund’s expanding presence presents a dual-edged scenario. Consistent inflows translate to sustained buying pressure as the fund acquires tokens to back new shares. Conversely, with over 3% of the circulating supply held within a single entity, a resurgence of outflows, similar to the $143 million drawdown earlier in the autumn, could potentially exert downward pressure on the token’s price.