Solana and XRP ETFs Soak Up Capital While Bitcoin Funds Bleed Out
Forget the old guard—new money's picking different horses.
The Rotating Door of Crypto Capital
Investor sentiment is pulling a sharp U-turn. Capital isn't just sitting on the sidelines; it's actively marching from one battlefield to another. The once-unshakable dominance of Bitcoin-focused funds is cracking under pressure as sophisticated capital seeks alternatives with sharper narratives and, frankly, more perceived upside. It's a classic portfolio rebalancing act, just with more volatility and Twitter drama.
Solana & XRP: The New ETF Darlings
While one segment bleeds, another one feeds. The institutional pipeline is clearly signaling a demand for diversified crypto exposure. Solana's high-throughput narrative and XRP's regulatory clarity play (despite the endless legal theater) are resonating with fund managers tired of the same old Bitcoin song. These aren't just speculative bets; they're calculated allocations into ecosystems promising something different—speed, utility, or a cleaner regulatory path. It shows a market maturing beyond a single-asset thesis.
The Bigger Picture: A Healthy Churn
This isn't a doom signal for crypto—it's a sign of life. Capital flowing between sectors indicates a deep, liquid market where investors can express nuanced views. The fact that products exist to facilitate this move into Solana and XRP is a victory for infrastructure itself. It means the ecosystem is building the pipes for the next wave of institutional money, whenever that wave decides to come back in full force. Just don't tell the Bitcoin maxis—they're busy checking the exits.
Let's be real: watching fund flows in crypto is like watching Wall Street try to time a rollercoaster with a sundial. The smart money might be rotating, but in this market, 'smart' is a relative term.
Bitcoin, Ether ETFs extend losing streak
Ether ETFs saw money leaving, too. They posted a net outflow of $41.74 million. This extended its losing streak to four consecutive sessions. ETH price has dropped by more than 11% in the past 24 hours to hover around $2,950.
As per the data provided by SoSoValue, BlackRock’s iShares Bitcoin Trust accounted for almost all of that figure. IBIT saw $101.62 million leave the fund in a single session. Despite the pullback, IBIT remains the largest Bitcoin ETF by flows. However, its total net inflows stand at around $62.9 billion since launch.
Fidelity’s Wise Origin Bitcoin Fund stood in the second spot in the tally of outflows on the day. It saw $1.95 million leave the fund. Its total inflows hover around $11.46 billion. All Bitcoin spot ETFs now hold net assets of about $115.88 billion. This represents around 6.48% of Bitcoin’s total market cap. Bitcoin is trading at an average price of $89,122 at the press time. Ether-linked ETFs are struggling to attract new capital, while ETH is also struggling to keep up in the market.
The market is dealing with uncertain selling pressure due to political drama brewing in Washington. The US Senate reportedly suspended sessions. This has delayed progress on a long-awaited crypto market structure bill.
Solana, XRP ETFs buck market slump
While Bitcoin and Ethe ETFs bled, solana and XRP-linked funds posted gains. Solana ETFs recorded inflows of about $1.87 million on Jan. 23. However, XRP ETFs recorded $3.43 million in inflows in the same session.
Solana failed to hold above $127 after a week of consolidation. SOL witnessed steady selling pressure as the entire market posted red indexes. Data shows that Solana ETFs attracted more than $9 million in net inflows in the last week. Solana ETFs now hold net assets of about $1.08 billion. Their net asset ratio stands near 1.50%. SOL is trading at an average price of $126.85 at the press time. XRP has also benefited from the shift. XRP ETFs recorded more than $3.43 million in inflows.
Attention is also turning to new ETF structures. Asset manager Cyber Hornet has filed for an S&P Crypto 10 ETF under the ticker CTX. The product could become the first spot crypto basket linked to an S&P index. According to the filing, Bitcoin would make up about 69% of the portfolio. Ether would account for roughly 14%. XRP would represent about 5%. Other holdings would include Binance Coin at 4% and Solana at 2%. Smaller allocations would go to TRON, Cardano, Bitcoin Cash, Chainlink, and Stellar.
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