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Zcash slips as spot ETF launch fades after 60% rally

ZEC fell 7.6% to $787 after converting the Grayscale Zcash Trust into a spot ETF began trading on NYSE Arca Tuesday under ticker ZCSH.

Reported · Written up by our desk · Market Structure

Zcash pulled back as its spot ETF listing began on NYSE Arca, a move that had helped fuel a sharp run-up into an eight-year high. CoinDesk data show ZEC fell 7.6% to $787 on Wednesday after a 56% weekly advance that pushed the token to near $880.

The selloff tracked the catalyst behind the rally, Grayscale's Zcash Trust conversion to a spot ETF and its start of trading on Tuesday on NYSE Arca. The fund holds up to 393,000 ZEC worth more than $260 million under the ticker ZCSH.

During the run-up, ZEC surged from below $600 to above $880, driven in part by expectations for an exchange traded product and attention around its capped 21 million supply and proof-of-work design. Leverage also appeared to amplify the move, with ZEC perpetual futures open interest nearly doubling to $1.8 billion during the rally.

CoinDesk also noted that borrowed positioning can increase forced selling as prices retrace. The broader crypto market offered little support, with bitcoin down 2% to $78,900 and most major tokens in the red as traders bank gains ahead of Friday’s large options expiry.

Latest closeBitcoin $78,804.00 ▲0.3%

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