Zcash Spot ETF Outpaces Bitcoin and Ether with $98M Weekly Inflow as Institutional Capital Rotates
Zcash spot ETFs topped weekly institutional crypto inflows at $98.2 million, outperforming major assets during a macro-driven sell-off triggered by US regulatory delays and a Federal Reserve rate hike. Bitcoin recovered late-week losses to finish slightly positive at $6.2 million, while Ether recorded $140 million in net redemptions. The rotation highlights growing institutional appetite for specialized altcoin exposures amid traditional market uncertainty.
A turbulent week in Washington and the Federal Reserve triggered sharp institutional reallocation across crypto exchange-traded products. While macro headwinds—including a rejected regulatory bill and a 25 basis point Fed rate hike—spurred multi-hundred-million-dollar sell-offs in major assets midweek, capital rapidly pivoted into specialized altcoin exposures.
Zcash spot ETFs captured the top spot with $98.2 million in weekly inflows, driving total fund assets to $914.5 million and generating over 32% of total spot ETF volume. The four-week-old product has drawn $271 million since launch, establishing itself as the third-largest altcoin ETF behind Solana and XRP.
In contrast, Bitcoin funds suffered severe midweek redemptions totaling over $746 million before aggressive Friday buying restored net flows to a modest $6.2 million. Ether products failed to fully rebound, closing the session with $140 million in net weekly outflows. This stark divergence signals that traditional investors are increasingly comfortable tactical trading around macro policy shocks while systematically accumulating privacy and alternative layer-one assets.