Bitcoin ETFs Bleed $60.4M as Altcoin Funds Defy Gravity
Bitcoin's flagship investment vehicle hits a speed bump, while the rest of the crypto market races ahead.
The Big Picture Shift
For years, Bitcoin dominated the narrative—the digital gold, the institutional gateway. Now, a $60.4 million exodus from its U.S.-listed ETFs tells a different story. It's not a market-wide retreat. Far from it. The money is moving, not leaving.
Where the Action Is
While Bitcoin's ETFs see red, funds tracking alternative cryptocurrencies—Ethereum, Solana, and a slew of newer protocols—are posting record inflows. Investors aren't losing faith in digital assets; they're diversifying their bets. The thesis is evolving from a single-store-of-value play to a broader belief in blockchain utility and high-growth niches. Wall Street's old guard might call it frothy; pioneers call it portfolio construction.
Reading the Signals
This divergence isn't necessarily bearish for Bitcoin itself—spot prices can decouple from ETF flows. But it screams one thing loud and clear: the crypto ecosystem is maturing. Capital is becoming smarter, more selective. It's chasing yield, innovation, and narratives beyond the original king. The era of 'Bitcoin only' is giving way to a multi-chain reality, whether the traditional finance purists like it or not. Sometimes, diversification looks a lot like a vote of no confidence in the previous champion—a classic move in the playbook of cynical capital always hunting for the next edge.
Bitcoin ETF Struggles as XRP and Solana Spot ETFs See Record Inflows
Since its debut last month, over $900 million in institutional capital has flowed to Ripple XRP spot ETFs, which suggests capital is moving as arbitrage gets unwound and Bitcoin ETF volatility persists. Remarkably, the XRP gained the biggest altcoin ETF launch over the years, with the four funds recording a single-day inflow of $38.04 million on Monday.
Moreover, net inflows into spot solana ETFs increased to $1.18 million in one day, all driven by the Fidelity FSOL fund. Since October 28, when it was launched, Solana has recorded a total net inflow of $640.06 million.
According to the CoinMarketCap data, XRP was on a massive hike in the beginning of December, reaching as high as $2.20. During the last 24 hours, the altcoin shoots up by 3.42% to reach the mark of $2.14, which demonstrates a positive trend.
Meanwhile, Solana has risen by 1.57% during the last week and is currently trading at $140.65. bitcoin also rose by 3.5% and is now trading at $93,528.21.
Crypto ETF Market Set to Grow, Says Katherine Dowling
Katherine Dowling, a Bitwise Asset Management executive, tells DL News that the crypto ETF market is going to grow. She stated that ETFs are a great place to start with several investors, adding that altcoin funds such as Solana and XRP have good fundamentals; these funds will lead to higher prices.
Bitfinex analysts, too, perceive it as a healthy strategic rebalancing, saying that the spot ETF channel is still intact.
As to the long-term perspective of Bitcoin, in their opinion, the structural thesis holds strong. They noted that with additional big allocators stepping into the market via ETF wrappers, the future of Bitcoin becoming a regulated store of value remains liquid, and future inflows can become more significant and consistent.
