US$93.56 million flowed out of Zcash ETF in one week: What impact will it have on European ZEC holde

The U.S. Zcash Spot ETF experienced a net outflow of funds for the first time

During the week ended October 5, 2026, investors had net withdrawals of approximately US$94 million from Zcash-related products; at the fund level, this figure was US$93.56 million. This is the first weekly outflow of funds since trading began on August 25, 2026. For holders, there has been no change in legal status, but the performance on the demand side is different from September.

Zcash's trading price is US$1,340.09 (or EUR 1,194.29, data as of October 6, 2026, source CoinGecko). In dollar terms, the price fell 0.98% from the previous day and 7.36% from a week ago. However, if observed on a one-month cycle, there is still an increase of 33.89%. These two figures are closely related, and reading only one can lead to a misjudgment of the overall situation.

First weekly outflow since listing on August 25, 2026

The fund is called Grayscale Zcash ETF and is traded on the NYSE Arca Exchange with the symbol ZCSH. This is a spot product, so it holds real ZEC tokens rather than tracking prices through futures contracts. Since its listing on August 25, 2026, the flow of funds has been clear: there is an inflow of funds every week. However, this trend has now broken.

Weekly outflows from spot funds mean that more shares are redeemed than new shares are issued. To meet this demand, the issuer releases the ZEC from the fund's assets and pays the proceeds to the redeemed holder. This is one of the normal mechanisms for exchange-traded funds (ETFs) and is not a malfunction. This is simply the opposite direction of operation from the previous six weeks.

This data needs to be viewed in the context of the flow of funds from large cryptocurrency funds during the week. According to money flow data from SoSoValue provider, Bitcoin products absorbed $241.1 million, achieving net inflows for the third consecutive week. The Ethereum fund lost $138 million. Solana recorded inflows of $2.4 million, and XRP recorded inflows of $4.7 million. This makes Zcash the second-largest outflow fund this week after Ethereum, although its fund is the youngest in its group.

Weekly outflow of US$93.56 million: Review of trends in various trading days

This outflow was not concentrated on a single day, nor was it caused by a single large sell-off. According to fund data, redemption amounts fluctuated between $26 million and $30 million over several trading days from late September to early October. This model refutes the argument that "a single large investor leaves the market" and more supports the idea of "multi-day reconfiguration".

September 30 became the day with the largest outflow in a single day

September 30, 2026 was the day with the largest outflow in a single day, with an outflow of US$30.25 million. This date is no accident: it is the last trading day of the quarter. Fund managers and asset managers close their accounts on this reporting date, and positions that perform strongly during the quarter are usually cut in the process. Given that Zcash has risen more than 30% monthly, it falls into this type of position.

US$751 million in fund assets versus cumulative net inflow of US$212.56 million

Here is one of the most interesting statistics. As of early October, the fund's assets were approximately US$751 million. However, all cumulative net inflows since listing are only $212.56 million. The difference of approximately US$538 million between the two is not new funds, but an increase in the price of ZECs already held.

In other words: Less than one-third of the fund's assets are paid-in capital, and the rest are valuations. Funds with this structure are sensitive to price declines, because assets shrink twice when prices fall and share redemptions occur.

Compare outflows with previous inflows: Before the outflow week, there was approximately US$306 million in net inflows on the books. The amount of US$93.56 million accounted for approximately 30% of the previous cumulative net capital. In other words, in nearly a week, nearly one-third of all historical net capital has been returned. Fund assets peaked in September and ranged from $915 million to $979 million, depending on the reporting date and price level.

Zcash fell 7.4% on the seventh day, while Bitcoin rose 2.9%

This weakness is not the weakness of the entire market. Bitcoin is priced at US$85,912 (or 76,565 euros), up 2.92% in seven days. Ethereum prices were US$2,715.22 (or 2,419.81 euros), up 1.34% in the same week. Zcash fell 7.36% during this period. Compared with the market, the gap is about ten percentage points.

Over the past 24 hours, ZEC prices have fluctuated between US$1,281.40 and US$1,361.16. Trading volume reached US$820.67 million. This keeps Zcash in tenth place by market value. This price is 58.02% lower than the historical high of US$3,191.93 set in October 2016.

Despite this week's weak performance, monthly earnings still reached 33.9%

If you only focus on one week's performance, you will see falling prices and fund losses. But if you look back at a month's performance, you see a gain of 33.89%. In the same month, Bitcoin achieved a gain of 7.79%, and Ethereum achieved a gain of 9.71%. As a result, during the 30-day cycle, Zcash performed significantly better than these two major currencies, only falling back in the last week.

This difference is a true description of the current situation. A rally that raises assets by one-third in four weeks is bound to achieve profit-taking at some point. It's not surprising that this happened at the end of the quarter. What the data cannot say is whether the outflow will continue. Money flow data describes the past; they know nothing about what will happen next week.

One point that is often overlooked in reports is that outflows from funds do not mean a sell-off in the cryptocurrency market in the usual sense. The issuer handed over ZEC, but shareholders who redeemed the shares could fully invest their funds in other cryptocurrency products. Money flow data shows reallocations and demand rather than automatic flight from the asset class.

ZCSH, ZCASH and ZEC: Three names represent three different things

Similarities of names can lead to expensive confusion, and the following is a brief explanation of the differences:

• ZEC is the token itself, which you can buy on a cryptocurrency exchange and transfer to your wallet.
• ZCSH is Grayscale's U.S. spot ETF, and the outflows discussed in this article are related to this.
• ZCASH is a code that tracks European securities at the same price.

ZCSH closed to German retail investors

This fund with an outflow of funds is not available to German retail investors. Such U.S. funds do not have a key information document (KID) that complies with European PRIIP regulations, and without this document, brokers are not allowed to sell the security to retail customers in the EU. In practice, this means that the outgoing data is information about needs to you rather than a call to do things yourself.

Vice versa. The fact that American investors redeemed shares does not explain the behavior of European investors. European products are younger, smaller and listed on different exchanges.

21Shares and Valour: Zcash securities in Europe

Starting from September 22, 2026, Zcash exchange-traded securities will appear on the European market. Swiss issuer 21Shares has launched 21Shares Zcash ETP with the code number ZCASH, ISIN = CH1608218801, and German securities identification number A4AXHY. The annual rate is 2.50%. The product is listed on Euronext in Amsterdam and Euronext in Paris, but was not listed on the Deutsche Bourse at the time of launch.

Meanwhile, Valour, a subsidiary of DeFi Technologies, launched Zcash ETP on the Swedish Spotlight stock market in late September, settled in Swedish krona and priced at an annual rate of 1.9%.

The difference of 0.6 percentage points in annual rates between two issuers, two fee models

sounds small, and it does during the short-term holding period. But if you invest 10,000 euros and hold it for five years, the expense difference will reach about 300 euros before any price gain is generated. Whether your broker is connected to Euronext or Spotlight determines which securities you can access. This can be confirmed by consulting your broker before placing an order.

Holding period and capital gains tax: impact on tax returns

This is the most obvious point where the tax treatment of tokens and securities is different, and decisions should be made before purchase, not after the event.

If you hold the ZEC directly in your personal wallet

Article 23 of the German Income Tax Act applies. Sold within one year of purchase, and the proceeds are taxed as private disposal income at your personal income tax rate. Once held for more than one year, the proceeds are exempt from tax. This holding period is why many German investors prefer tokens over securities.

Differences between securities and tokens

ETP in securities accounts are considered securities for tax purposes. Regardless of how long it is held, the proceeds are subject to a flat withholding tax of 25%, plus a solidarity surcharge and applicable church taxes. Your bank will usually pay taxes directly. For cryptocurrency assets ETP with physical delivery rights, the classification in tax practice is controversial; do not rely on general statements and should be reviewed on a case-by-case basis. A tax tool or portfolio tracker can record the purchase date and holding period to prove it when needed.

July 1, 2027: EU bans anonymous enhanced cryptocurrency assets

In Europe, for Zcash, there is a date that weighs more than any weekly capital flow data.

EU Regulation 2024/1624 on the prevention of money laundering prohibits credit institutions, financial institutions and cryptocurrency service providers from maintaining accounts holding anonymously enhanced cryptocurrency assets in Article 79. This clause will take effect on July 1, 2027.

Zcash falls within this definition because its network allows shielded transactions. For licensed providers within the EU, this means that such assets cannot be placed on shelves, hosted or intermediated. Monero, Dash and similar projects are equally affected.

The regulation clearly does not prohibit two things: You can continue to hold ZEC in your personal wallet, and transfers between self-managed wallets are not subject to regulation. The ban targets supervised businesses, not individuals. But in practice, this means that by mid-2027, easy access through EU regulated exchanges will disappear. Therefore, those who plan to hold ZEC for a long time are advised to arrange custody as soon as possible.

NU7 upgrade (November 5): Focus on changes in old ZEC balances

Next network date is earlier than regulatory deadline. The Zcash upgrade to NU7 is scheduled to take place on November 5, 2026. This is crucial for users who have owned the ZEC for a long time and have never moved it. In some cases, balances from the old Sprout pool may have to be transferred to the current pool before upgrading. If coins are held on the exchange or ETP, they are not affected because the provider is responsible for technical side matters. Self-hosting users should check the pool type of the address in advance and never wait until the deadline to act.

Zcash ETF Outflows: Key Points of Your Decision

Record outflows are a demand indicator, not a judgment on the network. It showed U.S. investors taking profits after a strong rise in September, coinciding with the quarterly reporting date. The following three steps are equally meaningful independent of the event:

1. Determine your access channel before trading. ZCSH is not available to you, European ETP depends on your broker's exchange connection, and the token itself runs through a cryptocurrency exchange. Which regulated cryptocurrency exchanges in Germany comply with MiCA regulations determines where you can obtain ZEC.
2. Decide whether to choose a token or a security based on taxes rather than headlines. Tokens held directly have a one-year tax-free holding period, while ETP faces a flat withholding tax: This leverage your return by more than a 0.6 percentage point fee difference. Use tax tools to record deadlines in a verifiable form.
3. Make custody arrangements for July 2027. If EU licensed providers can no longer host Zcash from July 1, 2027, you will need to establish your own arrangements for long-term holding of ZECs. Hardware wallets are a path not touched by this deadline.

(As of October 6, 2026. This article does not constitute investment advice. Price and fee structures are subject to change; please check terms with your provider before purchasing.)