Zcash ETFs See Inflows Amidst Bitcoin & ETH Outflows

Last week, Zcash ETFs experienced a significant return of investor interest, with Grayscale's fund recording its strongest inflows since mid-September. This comes as Bitcoin ETFs collectively lost over half a billion dollars in just two days, although they concluded the week with a net positive of $301.2 million due to earlier investments. Ethereum ETFs also faced outflows, amounting to $220.7 million.

Zcash's recovery followed a difficult three-week period of withdrawals totaling $143 million. However, the privacy-focused cryptocurrency rebounded, recovering nearly 29% of those losses last week. After a minor $10.4 million outflow on Monday, the Zcash ETF saw four consecutive days of inflows, with Friday alone attracting $20.5 million. This renewed buying suggests investor confidence in a potential recovery following a recent price correction.

Analysts hold differing views on whether Zcash's price can maintain its upward momentum. A key resistance level to watch is $1,200, with some experts indicating a bullish signal if ZEC closes above $1,223. Others, however, observe ZEC trading within a declining price channel and see $597 as a critical historical support level. Past performance in September, where strong inflows were followed by weeks of withdrawals, serves as a cautionary note.

Future indicators for Zcash's price trajectory will include upcoming ETF flow reports and the Federal Reserve's meeting scheduled for October 27-28. These events may provide further clarity on whether the current recovery trend for Zcash is sustainable.