Zcash ETF Draws $41.1 Million as Bitcoin Funds Bleed $500 Million

Grayscale’s Zcash ETF recorded $41.1 million in weekly inflows for the week ending October 23, 2026, marking its strongest performance since mid-September. This capital return occurred while Bitcoin exchange-traded funds lost more than $500 million in just two days and Ethereum ETFs shed $220.7 million for the same period.

Zcash Fund Reverses Three-Week Outflow Trend

The $41.1 million inflow represents a significant shift for the Zcash fund, which had previously lost $143 million over the three weeks leading up to the recovery. Last week, the fund recovered nearly 29% of those prior withdrawals. The daily flow data shows a volatile start to the week, with a $10.4 million outflow on Monday, followed by four consecutive days of inflows. Friday alone contributed $20.5 million to the weekly total.

In contrast, the broader market experienced significant outflows in major assets. Bitcoin ETFs lost more than half a billion dollars in two days, although the funds still finished the week $301.2 million positive due to earlier buying activity. Ethereum ETFs did not see a similar weekly recovery, ending the period with a net loss of $220.7 million.

Price Levels and Analyst Divergence

Market participants are closely watching ZEC’s price action to determine if the inflows will translate into sustained upward momentum. The immediate technical test is the $1,200 level. ZEC rebounded after falling to a low of $1,118 last week. Some analysts view a close above $1,223 as a bullish signal, which could trigger a crossover of short-term moving averages around October 28, suggesting stronger upward momentum.

Analyst Whale Factor, known by the handle @that1618guy, offers a more cautious perspective. In a post on October 23, Whale Factor noted that the current estimated time for a one-day green crossover is approximately five days, contingent on the price closing above the $1,223 level. The analyst stated that if ZEC candles above $1,414, it would force the crossover, but described the current situation as a “bulls wet dream” and predicted that the battle for the $1,200 levels would be fought over the next week. Whale Factor also identified $597 as a major historical level for ZEC, viewing the asset as trading in a declining price channel.

Historical data from September provides a cautionary context for the current recovery. A $98.2 million inflow week in September was followed by three weeks of withdrawals, during which ZEC retreated from its peak near $1,690. The fund data does not establish the specific motivations behind the return of buyers, though Zcash’s focus on private transactions offers a distinct investment narrative compared to other digital assets.

The next ETF flow reports and the Federal Reserve’s meeting scheduled for October 27–28, 2026, are expected to be key factors in determining whether Zcash’s recent recovery continues or follows the pattern of the previous September cycle.