ETF Investors Pouring Millions Back Into Zcash as Bitcoin Falls
Wall Street investors poured $41.1 million into Zcash last week, marking the largest weekly inflows for a Zcash ETF since mid-September. This surge occurred as Bitcoin funds lost more than half a billion dollars in two days.
Grayscale’s Zcash ETF recorded its strongest weekly inflows since mid-September, raising questions about whether investors are returning to the privacy-focused cryptocurrency ahead of a broader recovery.
The fund had lost $143 million during three difficult weeks before recovering nearly 29% of those withdrawals last week.
After another $10.4 million left on Monday, the fund recorded four consecutive days of inflows, with Friday alone bringing $20.5 million.
Technical Outlook
The immediate test for the cryptocurrency is $1,200. ZEC rebounded after falling to $1,118 last week, but analysts remain divided.
"$ZEC next thing im watching is the 1D green cross, current eta is in ~5 days and if price can close above the 1223 level if ZEC god candles above 1414 it will force the cross but atm its a bulls wet dream."
Some analysts see a potential bullish signal if ZEC closes above $1,223. That could lead to a crossover of its short-term moving averages around October 28.
Risks and Outlook
Whale Factor is less optimistic, identifying $597 as a major historical level. The analyst sees ZEC trading in a declining price channel.
September offers a warning. A $98.2 million inflow week was followed by three weeks of withdrawals, while ZEC retreated from its peak near $1,690.
The next ETF flow reports and the Federal Reserve’s October 27–28 meeting could help determine whether Zcash’s recovery continues.
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