<div>
 <h3 id="key-takeaways">Key takeaways</h3>
 <ul>
 <li>Zcash ETFs lead altcoin withdrawals with $11 million</li>
 <li>Solana, Avalanche and Hyperliquid funds also lose capital</li>
 <li>Hedera attracts inflows despite broader institutional selling</li>
 </ul>
 US altcoin exchange-traded funds recorded widespread withdrawals on November 5, with Zcash leading the selloff as investors reduced exposure to several major cryptocurrencies.
 According to SoSoValue data, the Grayscale Zcash ETF lost $10.99 million, while Hyperliquid, Solana, Avalanche and NEAR funds also experienced net outflows.
 Together, the five asset categories recorded approximately $16.8 million in withdrawals. Hedera was the exception, attracting roughly $278,000 as broader cryptocurrency markets struggled with renewed selling pressure.Zcash ETF Loses $11 Million as Solana and HYPE Follow 
 Grayscale's Zcash ETF, trading under the ticker ZCSH, recorded the largest individual altcoin fund withdrawal.
 The $10.99 million outflow reversed the previous session's $3.43 million inflow, leaving the fund with approximately $724.2 million in net assets and $206.7 million in cumulative net inflows.
 The reversal follows months of volatile demand for ZEC investment products.
 Coinpaper previously examined how <a href="https://coinpaper.com/36377/grayscale-files-zcash-income-etf-zcsh-nears-1b-in-assets" rel="noopener noreferrer nofollow">Grayscale's Zcash ETF approached $1 billion in assets</a>, driven partly by the cryptocurrency's earlier price rally.
 Hyperliquid funds experienced the second-largest withdrawals, losing approximately $3.02 million. Bitwise's BHYP accounted for $2.19 million, while Grayscale's HYPG lost roughly $829,000.
 Solana ETFs recorded $1.18 million in withdrawals after three consecutive sessions without net flows.
 The renewed selling follows an earlier <a href="https://coinpaper.com/37177/solana-etf-launch-set-for-hong-kong-as-us-funds-lose-248m-in-one-week" rel="noopener noreferrer nofollow">Solana ETF outflow streak</a>, when institutional investors withdrew $24.8 million in one week.
 Avalanche funds lost approximately $841,000, while NEAR recorded $774,000 in withdrawals.Hedera Defies Altcoin ETF Selling Pressure 
 Hedera's ETF market stood out as the only tracked altcoin category attracting new capital.
 The Canary HBAR ETF recorded approximately $278,000 in inflows, marking its second consecutive positive session.
 Its cumulative net inflows reached approximately $116.7 million, despite a comparatively modest $57.5 million in net assets.
 The contrast shows that institutional demand remains selective rather than uniformly bearish.
 Earlier <a href="https://coinpaper.com/34098/grayscale-pulls-out-cardano-hedera-and-polkadot-trust-etf-filings" rel="noopener noreferrer nofollow">Grayscale ETF restructuring decisions</a> demonstrated how product availability and issuer strategies can change independently of individual cryptocurrencies' fundamentals.
 Meanwhile, XRP ETFs recorded no net flows for a third consecutive trading day, extending the stagnation described in Coinpaper's <a href="https://coinpaper.com/38371/xrp-et-fs-record-zero-inflows-as-ripple-expands-banking-business-with-bny-coinbase-and-robinhood" rel="noopener noreferrer nofollow">recent XRP ETF analysis</a>.
 Dogecoin, Chainlink, Litecoin and several other altcoin categories also reported no net creations or redemptions.What the ETF Selloff Means for Altcoins 
 The withdrawals occurred during a broader cryptocurrency correction, with Bitcoin ETFs losing $430.2 million and Ethereum funds recording approximately $99.9 million in outflows.
 However, ETF withdrawals do not always translate directly into equivalent immediate selling pressure on the underlying tokens.
 Fund creations, redemptions and market-maker activity can affect holdings differently depending on each product's structure.
 Coinpaper previously examined <a href="https://coinpaper.com/37749/grayscale-lets-investors-exchange-xrp-solana-and-dogecoin-directly-for-fund-shares" rel="noopener noreferrer nofollow">Grayscale's in-kind subscription mechanisms</a>, which illustrate how investors can exchange eligible cryptocurrencies for fund shares without first selling them for cash.
 The timing is particularly notable for Zcash, whose <a href="https://coinpaper.com/38324/zcash-price-prediction-zec-jumps-10-ahead-of-major-network-upgrade" rel="noopener noreferrer nofollow">NU7 network upgrade</a> introduced faster target block times even as ETF demand remained volatile.
</div>

Altcoin ETF Selloff: Zcash Loses $11M as SOL, AVAX and HYPE Funds Face Withdrawals

Table of Contents

Coinpaper.com

Other articles published on Nov 6, 2026

Join our free newsletter for daily crypto updates!