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XRP ETFs See $89M Weekly Inflows Amid Solana Outflows

Spot XRP ETFs attract strong inflows amid regulatory optimism while Solana faces outflows and technical challenges in a cautious crypto market environment.

  • Spot altcoin ETFs for XRP and Solana recorded daily inflows amid a crypto market downturn.
  • XRP ETFs saw $89 million in weekly inflows, contrasting with Solana’s $156 million weekly outflows, according to CoinShares.
  • Investor interest in XRP benefits from regulatory optimism, while Solana faces technical concerns.
  • Franklin Templeton’s spot XRP ETF launched recently, contributing to inflows.
  • Market sentiment is cautiously optimistic, with the potential impact of a Federal Reserve rate cut closely watched.

On Monday, U.S. spot exchange-traded funds (ETFs) for altcoins XRP and Solana experienced daily inflows despite a broader cryptocurrency market selloff. Spot Solana ETFs have accumulated approximately $844 million in assets since inception, with $58 million inflows on Monday. Meanwhile, spot XRP ETFs raised around $629 million, attracting $164 million on the same day, as reported by SoSoValue data.

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The sustained demand for these ETFs reflects investor strategies focused on risk management and improved regulatory clarity. Czhang Lin, head of LBank Labs, stated that selective investor interest and risk management explain this trend. Many investors are holding long-term and viewing the selloff as an opportunity rather than a reason to exit.

However, weekly data from CoinShares highlights differing trends between the two altcoins. Solana faced $156 million in outflows last week, while XRP saw $89 million in inflows. Czhang Lin noted that Solana has been impacted by recent technical and network challenges, increasing perceived risks. XRP benefits from institutional interest and regulatory optimism, enhancing its appeal for capital inflows.

Adding to XRP’s positive momentum is the launch of Franklin Templeton’s spot XRP ETF, XRPZ, on the New York Stock Exchange Arca on Monday. This introduction supports the influx of institutional capital through newly available regulated pathways.

Rachel Lin, CEO and Co-Founder of SynFutures, described the market environment as cautious, where assets with clearer narratives tend to perform better. She mentioned that investors appear to be reallocating funds rather than abandoning crypto assets altogether. Alexis Sirkia, Chairman of Yellow Network, explained that these ETF products provide channels connecting traditional finance to digital assets.

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Market sentiment improved after the weekend, with the odds of a Federal Reserve rate cut rising to about 70% according to CME’s FedWatch tool. This optimism has helped Bitcoin extend its recent bounce. The prediction market Myriad shows an 82% probability of a 0.25% rate reduction on December 10.

However, the overall outlook for crypto remains sensitive to the Fed’s decision. Rachel Lin emphasized that any potential rally might be selective, favoring altcoins with strong fundamental stories and institutional backing. XRP is currently up 7.1% in the past 24 hours, while Solana has increased by about 5.2%, according to CoinGecko data.

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