Altcoin ETFs Including XRP, Solana in Green Amid Crypto Market Uncertainty

U.S. spot altcoin exchange-traded funds saw daily inflows Monday, amid a broader crypto market selloff that pushed overall sentiment into scary territory.

Spot Solana ETFs have attracted $843.81 million in total net assets since inception, seeing $57.99 million in inflows on Monday, according to SoSoValue data. Similarly, spot XRP ETFs raised $628.82 million, attracting a whopping $164.04 million in inflows on the same day.

This sustained demand stems from risk management-based capital rotation and greater regulatory clarity, experts said. Decrypt.

Manage influx

“It’s a combination of selective investor interest and risk management,” said Czhang Lin, director of LBank Labs. Decrypt. This suggests that many investors are holding their stocks for the long term, viewing the current sell-off as an opportunity rather than an exit signal, Lin said.

The divergence between altcoins is stark.

While the Solana and XRP ETF products have seen sustained daily inflows, CoinShares’ weekly report highlights a key difference between the two. Solana saw $156 million in outflows last week, while XRP bucked the trend with $89 million in inflows.

“Solana has recently experienced technical and network issues, which increases the perceived risk,” the LBank Labs analyst said, explaining the discrepancy. “However, with XRP, it benefits from both institutional interest and regulatory optimism, making it more attractive to inflows.”

Franklin Templeton’s XRP spot ETF, XRPZ, debuted Monday on the New York Stock Exchange Arca, which is another reason for the gap.

This contrasting dynamic is the mark of a cautious market.

“In today’s risk-averse environment, assets with clearer, less speculative narratives tend to hold up better,” said Rachel Lin, CEO and co-founder of SynFutures. Decrypt. “Investors are likely reallocating rather than just abandoning crypto altogether.”

The success of these products creates a new pipeline of institutional capital.

“The newly regulated pathways for institutional capital through ETF products are like pipes that connect TradFi’s massive reservoir to the digital asset ecosystem,” said Alexis Sirkia, president of Yellow Network. Decrypt.

An upcoming Santa Claus rally for altcoins?

The odds of a Federal Reserve rate cut rose to around 70%, according to CME’s FedWatch tool over the weekend. Risk Sentiment Improved, Extending Bitcoin’s Weekend Bounce Into the Week, Precedent Says Decrypt report.

Sentiment around rate cut prospects is reflected in the Myriad Forecast Market, owned by Decrypt parent company Dastan, where users give an 82% chance that the Fed will cut rates by a quarter point on December 10.

Nonetheless, the crypto market outlook remains delicate and heavily dependent on the Fed’s interest rate decision on December 10.

“With the increasing odds of a rate cut in December, it is possible that liquidity will flow back into risk assets, including altcoins,” Rachel Lin said.

However, she tempered expectations, stressing that any rebound would be selective. “I would expect this rally, if it happens, to be selective rather than widespread,” Lin noted. “Altcoins with strong structural history and institutional access have a good chance of outperforming in December, but this is not a guarantee of a new season across the board.”

XRP is up 7.1% over the past 24 hours, while Solana’s performance is hovering slightly lower, around 5.2%, according to CoinGecko data.