ETF Investors Pouring Millions Back Into Zcash as Bitcoin Falls

Bitcoin ETFs lost more than half a billion in just two days last week. Meanwhile, Wall Street investors poured $41.1 million into Zcash. Are they anticipating another rally for ZEC?

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.

Bitcoin funds still finished the week $301.2 million positive, thanks to earlier buying. Ethereum ETFs, meanwhile, lost $220.7 million.

Why Is Money Returning to Zcash?

Zcash’s recovery follows three difficult weeks. Its ETF lost $143 million during that period 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. Friday alone brought $20.5 million.

The return of buyers suggests some investors are willing to bet on a recovery after Zcash’s recent correction. 

Its focus on private transactions offers a different investment story, although the fund data cannot establish why buyers returned.

Can Zcash Price Sustain the Recovery?

The immediate test is $1,200. ZEC rebounded after falling to $1,118 last week, but analysts remain divided.

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, suggesting stronger upward momentum.

Whale Factor is less optimistic. The analyst sees ZEC trading in a declining price channel, identifying $597 as a major historical level.

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.

The post ETF Investors Pouring Millions Back Into Zcash as Bitcoin Falls appeared first on BeInCrypto.