Zcash ETF sees $41.09M inflow, ZEC targets Nov 5, 2026 upgrade

Institutional interest was noted as Grayscale's ZEC ETF attracted $41.09 million last week, although this recent inflow has not alleviated concerns regarding a possible downward adjustment.

The privacy-focused coin briefly approached $1,700 in September before experiencing a decline, leading market commentators to discuss the possibility of a deeper price correction. CryptoPatel suggested that the token might have established a major peak, stating that the "party might be over."

Despite several major developments within the ecosystem, ZEC has declined by over 20% just in the last month. On the institutional front, the Grayscale ZEC ETF saw inflows totaling $41.09 million last week, ending a three-week period of outflows.

The week's inflows were variable; $10.45 million exited on Monday, but sentiment improved the next day with $1.61 million coming in. Subsequent days saw inflows of $15.18 million on Wednesday and $14.23 million on Thursday, culminating in a strong Friday with $20.52 million flowing in. This late-week reversal allowed the fund to be positive for the first time in four weeks.

Further technical advancements include Zcash Network Upgrade 7 (NU7), slated for mainnet activation on November 5, 2026. This upgrade will reduce the target block time by two-thirds, moving it from 75 seconds to 25 seconds.

Zcash developers are also developing a new security feature to shield wallets from future quantum computing threats. Roman Akhtariev, associated with Zakura, mentioned that post-quantum signature opcodes are scheduled for January, 2027. This update will enable the network to validate hash-based signatures, which are designed to resist quantum computer attacks, thereby complicating attempts by attackers to exploit public keys or forge transaction approvals for fund theft.

Nevertheless, ZEC has faced difficulty stabilizing its valuation. CryptoPatel identified $834 as a crucial support level, warning that a drop below it could lead to "ugly" conditions, potentially driving prices toward $480, $300, $200, and even $74.

Despite the immediate volatility, Gemini co-founder Cameron Winklevoss maintains a bullish outlook, suggesting ZEC could surpass $5,000 per coin, labeling it an "AI hedge in crypto." In an interview with Maxine Desalle, he estimated Zcash's market value at approximately $25 billion, equating to about 2% of Bitcoin's market capitalization. Winklevoss further noted that if ZEC reached 10% of Bitcoin's value, its price could multiply fivefold, stating, "I would never consider Zcash a trade, but it is the other side of the AI coin. If you're looking for the AI hedge in crypto or the quantum hedge in crypto, that's going to be Zcash."

These developments illustrate a complex interplay between fundamental protocol upgrades, institutional capital flows, and speculative market positioning surrounding privacy-focused assets within the broader decentralized finance landscape.

Why it matters

The recent price volatility for ZEC, despite institutional inflows, raises questions about the sustainability of its rally. These technical upgrades, like NU7 and quantum resistance, are crucial for the long-term viability and security of the privacy layer within the ecosystem. Investors should monitor if these developments can translate into sustained price action.