Zcash ETF Tops Crypto Inflows Last Week, Not Bitcoin or Ethereum

Spot exchange-traded funds tracking Zcash (ZEC) pulled in $98.2 million during the week ending September 18, making it the top-grossing crypto product among 14 funds. In contrast, Ethereum (ETH) funds saw the only outflow, losing $140 million.

Those weekly numbers conceal a sharp round trip, however. Bitcoin (BTC) and Ethereum products both sold off heavily midweek, and only one managed to recover by week's end.

Two Tough Days in Washington, Then a Rebound

Both fund groups started the week in positive territory. Monday saw Bitcoin ETFs attract $160.04 million, while Ethereum products brought in $121.02 million.

The trend reversed Tuesday after the Senate voted 49-50 against cloture on the Digital Asset Market CLARITY Act. Bitcoin funds lost $450.33 million in that session, their biggest single-day outflow of the week.

On Wednesday, the Federal Reserve raised interest rates by 25 basis points to a range of 3.75% to 4%, its first hike since 2023. Bitcoin lost another $295.98 million, and Ethereum gave up $224.11 million.

Bitcoin reversed course on Thursday and added $433.03 million on Friday, clawing back the $746.31 million shed over the two policy-driven sessions. Weekly net flows came to just $6.2 million, the smallest absolute total in 141 weeks of trading.

Ethereum took longer to turn. Outflows there stretched across three straight days, totaling $404.82 million before a $143.80 million inflow on Friday left the week in the red.

A Fund Just Four Weeks Old Outpaces Older Rivals

The Zcash ETF, which launched in late August, has now recorded four consecutive weeks of positive flows, bringing cumulative intake to $271 million. Assets surged 40.5% last week to $914.5 million.

That lifts Zcash to third place among altcoin ETF products, trailing XRP (XRP) and Solana (SOL) but ahead of nine others. Trading volume hit $11.42 billion, accounting for 32.5% of all spot crypto ETF turnover.

Solana added $13.2 million, extending a streak to 12 straight positive weeks. XRP brought in $9.6 million, roughly half the prior week's $19 million.

Hyperliquid (HYPE) swung to a $3.1 million inflow after losing $26.4 million. Chainlink (LINK), Avalanche (AVAX), Tron (TRX), Dogecoin (DOGE), Litecoin (LTC), and Hedera (HBAR) combined for less than $4.8 million, while BNB and Polkadot (DOT) recorded zero flows.

Net flows across all 14 products came to negative $5 million, even as combined assets rose 4.89% to $123.9 billion. Whether buyers will chase the rebound or stay on the sidelines should become clear in next week's data.