XRP & SOL ETFs Outperform BTC & ETH Funds in Investor Shift

The standout performers in recent weeks have been spot ETFs for XRP and Solana (SOL). Since the debut of Canary Capital’s XRPC on November 13, the spot XRP ETF cohort has not recorded a single day where net outflows exceeded inflows. This remarkable streak continued through December 23, with a modest $8.19 million inflow, followed by a more substantial $43.89 million on the subsequent Monday. According to SoSoValue, this consistent demand has propelled total net inflows into spot XRP ETFs to $1.13 billion.

Solana-based funds are exhibiting similar resilience. The eight spot SOL ETFs last saw net outflows on December 3 and have since attracted well over $130 million in fresh capital. Leading this charge is Bitwise’s BSOL, which has accumulated a dominant cumulative net inflow of nearly $620 million. However, the segment shows internal divergence, with 21Shares’ TSOL product remaining deep in negative territory. Despite its strong recent run, the total net inflow for all SOL ETFs, at $754 million as of a recent Tuesday close, still trails the aggregate figure for XRP products.

In sharp contrast, the pioneering spot ETFs for Bitcoin (BTC) and Ethereum (ETH) are mired in a period of sustained capital flight. Bitcoin ETFs, which saw net inflows peak at $62.77 billion on October 9, have since shed nearly $6 billion, declining to $57.08 billion by December 23. On that day alone, a significant $188.64 million exited these funds. A particularly concerning signal for the sector is the performance of BlackRock’s IBIT, the largest Bitcoin ETF, which has registered continuous net withdrawals, losing its earlier momentum.

The situation for Ethereum ETFs is equally dire. These products have witnessed only one day of net inflows since December 11—a $84.59 million gain on December 22—which was immediately erased the following day by outflows of $95.53 million. Mirroring Bitcoin’s trajectory, Ethereum ETF net inflows peaked in early October at $15.09 billion and have contracted by almost $3 billion since then. The consistent redemptions from these established funds underscore a broader cooling of investor enthusiasm for the crypto giants via the ETF wrapper.

The simultaneous strength in altcoin ETFs and weakness in flagship crypto ETFs points to a meaningful rotation of capital within the digital asset space. Investors appear to be reallocating from the mature, large-cap assets of Bitcoin and Ethereum toward perceived opportunities in alternative cryptocurrencies like XRP and Solana. This trend occurs even though the absolute net inflows into XRP and SOL products are not always substantial on a daily basis; their consistency is what sets them apart.

This divergence in ETF flows serves as a real-time barometer of shifting market sentiment. While the outflows from BTC and ETH funds may reflect profit-taking, risk aversion, or a search for higher beta returns, the unwavering inflows into select altcoin ETFs suggest targeted confidence in their underlying narratives and market positions. As the data from entities like Bitwise and BlackRock illustrates, the crypto ETF market is no longer a monolithic bloc tracking only Bitcoin and Ethereum but a fragmented landscape where investor appetite is actively differentiating between digital assets.