Zcash (ZEC) spot exchange-traded funds drew $98.2 million in the week ending September 18, marking the largest inflow among 14 crypto products tracked. Ethereum (ETH) funds were the only category to post an outflow, declining by $140 million.
Bitcoin and Ethereum products experienced significant mid-week selloffs triggered by policy developments, though Bitcoin recovered by week's end while Ethereum remained underwater.
Policy Moves Drive Mid-Week Volatility
Bitcoin ETFs opened the week strongly with $160.04 million in inflows on Monday, followed by Ethereum products adding $121.02 million. The momentum reversed sharply on Tuesday when the Senate rejected cloture on the Digital Asset Market CLARITY Act by a 49-50 vote, prompting a $450.33 million outflow from Bitcoin funds—their worst day of the week.
On Wednesday, the Federal Reserve raised interest rates by 25 basis points to a range of 3.75% to 4%, marking its first increase since 2023. Bitcoin shed another $295.98 million that session, while Ethereum lost $224.11 million.
Bitcoin recovered $433.03 million on Friday, ultimately pulling in a net $6.2 million for the week—the smallest absolute figure in 141 weeks of trading. Ethereum outflows persisted for three consecutive sessions totaling $404.82 million, with only a $143.80 million inflow on Friday insufficient to overcome the losses.
Zcash Leads Altcoin Category After Recent Launch
The Zcash ETF dominated inflows despite launching in late August. The fund has posted four consecutive weeks of positive flows and accumulated $271 million in total inflows since inception. Assets jumped 40.5% in the week to $914.5 million, making Zcash the third-largest altcoin ETF product behind XRP and Solana.
Trading volume in Zcash ETFs reached $11.42 billion, representing 32.5% of all spot crypto ETF turnover.
Mixed Results Across Other Altcoin Products
Solana ETFs added $13.2 million, extending a positive streak to 12 consecutive weeks. XRP took in $9.6 million, down from $19 million the previous week. Hyperliquid (HYPE) reversed to a $3.1 million inflow after posting a $26.4 million outflow the prior week.
Chainlink (LINK), Avalanche (AVAX), Tron (TRX), Dogecoin (DOGE), Litecoin (LTC), and Hedera (HBAR) collectively drew under $4.8 million. BNB and Polkadot (DOT) recorded zero flows.
Net flows across all 14 products totaled negative $5 million for the week, while combined assets rose 4.89% to $123.9 billion.
