Zcash ETF inflows surge as privacy coins outperform Bitcoin and wider crypto sector

While the broader cryptocurrency market has shown signs of recovery this month, privacy-focused coins have staged a distinct rally, setting themselves apart from Bitcoin and most major tokens. Bitcoin remains approximately 36% below its October high, failing to reclaim previous peak levels seen by much of the market last year.

Zcash sees robust inflows and institutional interest

A significant share of the latest surge in privacy coins is attributed to Zcash, a cryptocurrency that emphasizes user privacy and zero-knowledge cryptography. New institutional products have amplified the move: Grayscale’s Zcash ETF, which began trading on August 25, brought net inflows of $34.4 million by September 4, during which time the ZEC token rose above $1,000.

Zcash’s network computing power, also referred to as its hash rate, increased from about 25 GigaSolutions per second in late August to over 30 GigaSolutions per second, signaling greater mining activity and network security.

Coinpaper, a crypto industry research outlet, highlighted that futures open interest for Zcash has climbed to about $2.3 billion, increasing the token’s exposure to leveraged trading and potentially contributing to price volatility.