The Grayscale ZCSH fund, which tracks Zcash, experienced its first week of net outflows since its launch in August. Investors withdrew $93.6 million from the ETF this week, a significant shift following a period of growth. Just two weeks prior, the fund led the crypto ETF market with inflows totaling $98.2 million.
The decline in ETF interest coincides with a drop in the price of ZEC. As of the October 3 chart snapshot, the asset traded near $1,308, representing a 17.5% decrease for the week and a 23% decline from its recent peak of $1,690. Data from SoSoValue indicates that the fund has not recorded daily net inflows since September 22.
Market analysts are monitoring the $1,270 to $1,300 range as a critical support level where buyers previously entered the market. If this support fails, the price could potentially drop to $1,155. Conversely, a reduction in selling pressure might lead to a short-term recovery toward the $1,320 to $1,360 range.
A sustained recovery for ZEC above the $1,380 to $1,425 level could signal a potential move toward $1,500 later in October. Market participants note that renewed ETF inflows would serve as a key indicator of returning demand for the asset, as current indicators suggest that buying momentum has faded.
