Zcash Plunges 23% as Grayscale ETF Sees First Weekly Outflow

Price Collapse Triggers ETF Reversal

Zcash (ZEC) has shed roughly 23% since reaching $1,697 on September 27, with the token trading near $1,335 as of this writing. The decline coincides with a sharp pivot in Grayscale’s zcash ETF, which recorded its first weekly outflow of approximately $93 million.

Leverage Withdrawal Fuels Decline

Futures markets show a contraction in leveraged positions, with open interest and funding rates trending lower. Traders are exiting short-term bets as volatility spikes, leaving ZEC vulnerable to further downside if macro conditions remain bearish.

Market Context

The token’s drop follows a period of heightened speculative activity in September, when retail and institutional demand briefly surged. The reversal highlights sensitivity to ETF flows, particularly for smaller digital assets under Grayscale’s management. Analysts note that ZEC’s correlation with broader risk assets remains elevated, amplifying its reaction to sentiment shifts.

Source: Bitcoin.com News