Zcash spot ETF fell 8% after launch, ending a 60% rally

Zcash (ZEC) fell 7.6% to $787 on Wednesday, giving back a 56% gain from the previous week that had pushed the price to an eight-year high of around $880. This pullback coincided with Grayscale's Zcash Trust converting to a spot ETF and listing on the NYSE Arca on Tuesday (ticker ZCSH), with the trust holding approximately 393,000 ZEC, valued at over $260 million.

In the days leading up to the ETF listing, ZEC surged from below $600 to above $880, reaching its highest level since 2018, as the market compared it to Bitcoin's 21 million supply cap and proof-of-work mechanism, promoting its "next Bitcoin" narrative. During this period, the open interest in ZEC perpetual contracts nearly doubled to $1.8 billion, with leveraged funds potentially accelerating both the upward and downward movements.

In the overall market, Bitcoin fell 2% to $78,900, with most major cryptocurrencies closing lower, marking a pause in the week-long crypto rebound.