Investors pulled roughly $16.8 million from U.S.-listed altcoin exchange-traded funds on November 5, with a Grayscale product tracking the privacy coin Zcash accounting for the bulk of the redemptions, according to data compiled by SoSoValue.
The Grayscale Zcash ETF (ZCSH) lost $10.99 million in a single session, wiping out the $3.43 million that flowed in a day earlier. The fund now holds about $724.2 million in net assets, and its cumulative net inflows stand near $206.7 million. That is a sharp comedown from earlier in the year, when a Zcash price rally pushed the fund's assets toward the $1 billion mark.
Zcash is built around zero-knowledge proofs, a design that lets users shield transaction details from public view in contrast to fully transparent blockchains. Demand for investment products tied to the token has swung widely, and the latest retreat fits that pattern.
Hyperliquid-linked funds posted the second-largest drawdown. Bitwise's BHYP shed $2.19 million and Grayscale's HYPG lost about $829,000, for a combined $3.02 million. Solana ETFs, which had logged three straight sessions of zero net flows, gave back $1.18 million. The reversal follows a stretch in which institutional holders pulled $24.8 million from Solana funds over a single week.
Avalanche and NEAR products also slipped into the red, with outflows of about $841,000 and $774,000, respectively. The five asset categories together accounted for the $16.8 million net withdrawal.
Hedera was the lone bright spot among the tracked altcoin categories. The Canary HBAR ETF attracted $278,000, its second consecutive session of positive flows, lifting cumulative net inflows to about $116.7 million against $57.5 million in net assets. The split suggests institutions are being selective rather than abandoning the asset class wholesale.
Note: Net flows for the November 5 trading session as reported by SoSoValue.
Several other altcoin categories sat out the action entirely. Funds tracking XRP recorded no net creations or redemptions for a third straight trading day, while Dogecoin, Chainlink and Litecoin products also finished flat.
The altcoin selling unfolded against a much larger retreat in the broader crypto ETF complex. Bitcoin funds bled $430.2 million and Ethereum products lost $99.9 million over the same period, underscoring how broad the risk reduction was.
Redemptions do not automatically translate into equivalent spot-market selling. The actual pressure on an underlying token depends on how a product is structured and how shares are created and redeemed. Grayscale's in-kind subscription model, for instance, lets eligible investors deposit the underlying cryptocurrency in exchange for new ETF shares instead of converting tokens to cash first, which can cushion the market impact of flows in either direction.
The timing is notable for Zcash. The outflows landed alongside the NU7 network upgrade, which shortened the blockchain's target block times even as ETF demand continued to fluctuate. For investors, the session is a reminder that altcoin fund flows remain narrow and issuer-specific, with capital rotating between products rather than leaving the category in unison.
