Zcash Shows Buy-the-Rumor Pattern Ahead of Grayscale ETF, Santiment Says

Zcash social chatter peaked a day before ZEC reached its recent high and had returned to normal levels by the time Grayscale’s spot exchange-traded fund (ETF) launched, according to an analysis by crypto analytics platform Santiment, suggesting speculative attention was concentrated in the run-up to the event rather than after it.

For context, ZEC climbed about 65% from roughly $509 on Aug. 18 to about $852 on Aug. 23. Social mentions reached 232 on Aug. 22, around six times the cryptocurrency’s August baseline, putting the peak in attention one day ahead of the price top. 

By Aug. 25, when Grayscale’s converted Zcash fund began trading on NYSE Arca as a spot ETF, social activity had fallen back to baseline levels. The timing suggests traders may have anticipated the launch, with enthusiasm fading before the catalyst itself arrived. 

The fund originated as Grayscale’s Zcash trust, launched in 2017, before its conversion to an ETF. 

ZEC has since eased to about $796, roughly 6% below its peak. The combination of an earlier surge in social attention and the subsequent price pullback is consistent with a buy-the-rumor, sell-the-news pattern, though the data alone does not establish that social activity caused the price move.

Source: Santiment