Institutional investors are significantly accumulating XRP and Solana while offloading their Bitcoin holdings. This comes amid the launch of the new altcoin ETFs in the United States (U.S.), which provide spot exposure to these coins.
Institutions Buy XRP And Solana While Dumping Bitcoin
A CoinShares report showed that institutional investors bought XRP and Solana while offloading BTC. The SOL funds recorded $421 million in inflows, the second largest on record, thanks to the launch of the U.S. spot Solana ETFs. XRP funds also recorded inflows of $43.2 million. Meanwhile, the Bitcoin ETFs recorded an outflow of $946 million. Notably, BTC was the only crypto asset to record an outflow.
CoinShares noted that the outflows from the Bitcoin ETFs were likely due to Fed Chair Jerome Powell’s hawkish speech following the FOMC meeting. The Fed Chair stated that a December rate cut was far from certain, which sparked market uncertainty. Meanwhile, the XRP and Solana funds have recorded these inflows amid the launch of the new altcoin ETFs.
Bitwise and Grayscale Solana ETFs launched last week and had strong inflows in their first week. SoSoValue data shows that these SOL funds recorded a total weekly net inflow of almost $200 million. Meanwhile, the U.S. spot Bitcoin ETFs saw a weekly net outflow of nearly $800 million.
Bloomberg analyst Eric Balchunas revealed that Bitwise’s Solana ETF led all crypto ETFs in weekly flows last week. This included BlackRock’s Bitcoin ETF, which he noted had a “rough week.” This also contributed to the significant decline in BTC’s price, which failed to break above the psychological $110,000 level last week.
XRP ETFs Expected To Launch Soon
Optimism for XRP is also high at the moment, as a spot XRP ETF could launch by November 13. Asset manager Canary Capital has updated its S-1 filing to remove a delay amendment, which allows it to launch on November 13. This is expected to boost inflows into the XRP ecosystem, especially with the firm’s CEO, Steve McClurg, predicting that XRP funds could attract between $5 and $10 billion in their first month.
It is worth mentioning that Grayscale and Bitwise have also filed amendments for their respective XRP ETFs and could launch shortly after Canary Capital’s XRP ETF goes live. These issuers are looking to take a similar route to the one they took to launch the Solana ETFs. Balchunas noted that the XRP ETF issuers didn’t have back-and-forth comments with the SEC as the Solana ETF issuers did. However, he added that it was worth a try.
It remains to be seen where the XRP ETFs will rank alongside the Bitcoin, Ethereum, and Solana ETFs. Market expert Nate Geraci expects them to see significant demand, given the demand XRP has enjoyed among institutional investors through CME futures and futures ETFs.
Featured image from Medium, chart from Tradingview.com
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