Grayscale’s Zcash spot ETF, trading under the ticker ZCSH, saw $93.56 million in net outflows over a single week, its hardest week so far since launch. By early October, assets under management had fallen back to about $751 million from a September peak of roughly $915 million to $979 million.
ZCSH’s early run gave way to a redemption line
ZCSH listed on NYSE Arca on Aug. 25, 2026, after converting from the Grayscale Zcash Trust. It became the first U.S.-listed spot ETF offering direct exposure to the ZEC token.
A spot ETF holds the underlying asset itself rather than futures contracts linked to that asset. Buying a share gives investors exposure to a slice of real ZEC held in custody by the fund.
The start was strong. By mid-September 2026, cumulative net inflows had reached $271 million. The hottest week was the one ending Sept. 18, 2026, when the fund pulled in $98.2 million in fresh money.
Trading activity was also heavy during the early phase. In its strongest week, ZCSH made up 32.5% of all spot crypto ETF trading volume. At its peak, the fund held about 3.5% of ZEC’s total supply.
Late-September and early-October data show sustained outflows
The reversal is visible in the daily numbers. On Sept. 30, the fund posted $30.25 million in redemptions. On Oct. 2, another $26.93 million left the product.
Those readings were not isolated spikes. Across several trading days from late September into early October, redemptions repeatedly landed in the $26 million to $30 million range.
The damage accumulated. Over that period, cumulative net inflows fell from about $268 million to $212.56 million. ZCSH remains net positive since launch, but the buffer is clearly thinner now.
Assets under management peaked in September at around $915 million to $979 million. By early October, that figure had slipped to about $751 million.
Price swings, a stock split and a 2.5% fee
ZEC was highly volatile after the ETF came to market. The token initially moved above $1,500 before dropping back to lower levels.
Grayscale also took a step aimed at keeping trading smooth. On Sept. 18, 2026, it announced a 1-for-3 forward stock split for ZCSH. The record date was Sept. 28, and shares began trading on a split-adjusted basis on Sept. 30.
The timing stood out. Shares started trading on the adjusted basis on Sept. 30, the same day the fund recorded $30.25 million in outflows.
ZCSH charges a 2.5% fee, meaning holders pay an annual cost equal to 2.5% of the amount invested in the fund.
What the fund now means for ZEC
A fund that at one point held about 3.5% of ZEC supply has become a material force in the token’s supply-and-demand balance. When ZCSH takes in money, it needs to hold more ZEC. When redemptions hit, that relationship runs in the opposite direction.
For Grayscale, the picture is mixed rather than outright weak. The fund still holds about $751 million in assets, and cumulative net inflows remain positive at roughly $212.56 million.
For the broader crypto ETF market, ZCSH also showed that a spot product tied to a smaller token can still capture a striking share of trading volume. At its peak, the fund accounted for 32.5% of all spot crypto ETF turnover.
The next points to watch are straightforward: whether daily redemptions stay in the $26 million to $30 million band or begin to narrow, whether ZEC can hold its price level to support assets under management, and whether the stock split delivered the liquidity improvement Grayscale was seeking.