Bitcoin ETFs Face Third-Worst Month as SOL and XRP ETFs Defy Trend

Legacy crypto ETFs saw another week of strong inflows from December 22 - 26. 

The Bitcoin ETF market alone witnessed over $720 million in withdrawals that week, marking the continuation of a strong trend of sales. Over the last ten weeks, a total of seven weeks culminated in these Bitcoin-based financial vehicles registering more outflows than inflows.

source: SoSoValue

BlackRock's IBIT was responsible for the largest 1-day outflows, with $192.6 million leaving the fund on December 26. Bitcoin ETFs are on track to register their third-worst-performing month since their inception in early 2024. 

Ethereum Also Seeing Withdrawals

Meanwhile, Ethereum ETFs are under a similar trend. Over the last week, ETH products registered over $100 million more outflows than inflows, marking the second-consecutive week with more withdrawals. 

source: SoSoValue

Formerly the best-performing crypto ETF product in the third quarter, the total net assets of ETH-tied exchange-traded funds plunged by nearly half, going from $30.57 billion in October to the current $17.73 billion in net assets. 

But while exchange-traded funds based on the two largest cryptocurrencies in the market continue to see losses, smaller altcoin ETFs continue to show incredible resiliency. 

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Solana and XRP Continue to See Deposits

Regulated Solana exposure on Wall Street is now on a 15-day streak of straight inflows. Last week, SOL ETFs trading on NYSE, CBOE, and Nasdaq collectively registered $13.14 million in net inflows.

Meanwhile, institutions added around $60 million to XRP ETF funds, continuing to make the financial vehicle based on Ripple's altcoin the top-performing crypto product on Wall Street in the fourth quarter. 

Coming close to being two-months old, XRP ETFs became the third-most-valuable crypto fund on Wall Street in record pace. As of today, these funds have a collective net asset value of $1.24 billion. 

Solana and XRP ETFs have been performing so well that they're outperforming the very digital asset each vehicle is based on. Over at the crypto market, the Solana token trades at a 10% decrease in December, while $XRP is under even larger pressure at 15% losses in the month. 

It's hard to say why regulated altcoin exposure is outperforming nearly all other types of crypto products. Moving into it, we all speculated how Solana and XRP could attract strong investor demand on Wall Street, but the scale of inflows compared to overall market conditions has exceeded expectations so far.