Grayscale’s Zcash ETF sheds $93.56 million in a single week

The first US spot Zcash ETF just had its roughest week yet. The fund lost $93.56 million to outflows over a single week.

From launch-week darling to redemption queue

The fund is Grayscale’s ZCSH, which debuted on August 25, 2026, on NYSE Arca. It was converted from the existing Grayscale Zcash Trust. It became the first US-listed spot exchange-traded fund offering direct exposure to ZEC tokens.

A spot ETF holds the actual asset rather than futures contracts tied to it. Buying a share means owning a slice of a pile of real ZEC, held on your behalf.

The opening act was strong. Cumulative net inflows hit $271 million by mid-September. The best stretch was the week ending September 18, 2026, when $98.2 million in fresh money arrived.

Trading activity was equally loud during the honeymoon. In its strongest week, ZCSH accounted for up to 32.5% of all spot crypto ETF turnover. At its height, the fund held roughly 3.5% of the total ZEC supply.

The numbers behind the retreat

The slide shows up clearly in the daily data. On September 30, the fund recorded a single-day redemption of $30.25 million. On October 2, another $26.93 million left.

Those were not isolated blips. Several trading days saw redemptions in the $26–30 million range during late September and early October.

The damage accumulated. Cumulative net inflows dropped from around $268 million to $212.56 million over this period. The fund is still net positive since launch, but the cushion is noticeably thinner.

Assets under management peaked at approximately $915–979 million in September. By early October, it had fallen to around $751 million.

ZEC’s price swung widely after the ETF’s debut. It initially pushed past $1,500 before settling at lower levels.

A stock split and a hefty fee

Grayscale has made at least one move to keep trading smooth. On September 18, 2026, it announced a 3-for-1 forward share split for ZCSH. The record date was September 28, and shares began trading on the adjusted basis on September 30.

The timing was a little awkward. Shares started trading on a split-adjusted basis on September 30, the same day the fund posted its $30.25 million outflow.

ZCSH carries a 2.5% expense ratio, meaning holders pay that percentage of their investment each year to own it.

What this means for ZEC and the fund

A fund that once held roughly 3.5% of ZEC’s supply is now a meaningful source of supply and demand pressure for the token. When ZCSH sees inflows, the fund needs to hold more ZEC. When it sees redemptions, that relationship runs the other way.

For Grayscale, the picture is mixed rather than grim. The fund still holds around $751 million in assets and remains net positive at $212.56 million in cumulative inflows.

For the broader crypto ETF market, ZCSH proved that a spot product built around a smaller token can capture a startling share of trading activity, up to 32.5% of spot crypto ETF turnover at its peak.

The things to watch are straightforward. First, whether daily redemptions keep landing in the $26–30 million range or begin to taper. Second, whether ZEC’s price finds firmer footing, since that directly props up AUM. Third, whether the share split delivers the liquidity boost Grayscale was aiming for.