Altcoins Shine as Bitcoin and Ethereum ETFs Lose Steam
In a surprising twist, Solana (SOL) and XRP (XRP) exchange-traded funds (ETFs) are attracting investors, even as Bitcoin (BTC) and Ethereum (ETH) ETFs face significant outflows. This shift suggests a growing interest in alternative cryptocurrencies.
New ETFs See Strong Inflows
The new Solana and XRP ETFs have not seen a single day of outflows since their launch, according to data from SoSoValue. This is a stark contrast to the broader market, where Bitcoin and Ethereum ETFs are experiencing some of their worst daily outflows since their inception.
- Solana ETFs have accumulated nearly $500 million in net inflows.
- XRP ETFs have seen $410 million in inflows.
XRP ETF Launch Success
On Thursday, Bitwise Asset Management launched its XRP ETF under the ticker "XRP." The ETF had a strong debut, pulling in $105 million on its first trading day. Canary’s XRPC added another $12.8 million on the same day, bringing total inflows to $118 million.
"Canary CEO Steven McClurg congratulated Bitwise on the launch, highlighting a sense of camaraderie despite being competitors."
Canary has also contributed to the consistency of XRP ETF inflows, holding the record for the largest XRP ETF inflow day with $243 million.
Solana ETFs Show Resilience
Solana-based ETFs have shown similar resilience, recording consistent daily inflows even as the broader markets declined.
- SOL-based ETF products attracted between $8.26 million and $55.61 million per day this week.
- Nov. 19 marked the strongest daily inflow for Solana ETFs.
Underlying Assets Underperform
Despite the steady gains posted by SOL and XRP-based ETFs, the underlying assets have seen poor performances in the past month.
- Solana (SOL) declined by 32.5% in the past month and 10.9% in the last week, trading at $122.94, representing a 52.3% decline in the last year.
- XRP performed similarly, declining by 21.2% over the last 30 days and 16.6% over the last week. However, its yearly chart tells a different story, with the asset currently trading at $1.86, representing a 49.9% increase over the past year.
Investor Sentiment and Altcoin Traction
This divergence in ETF performance raises questions about investor sentiment and the potential for altcoins to gain more traction in the crypto market.
