Crypto ETF Market Sees Sharp Divergence as Altcoins Attract Significant Capital
This month, the crypto ETF market has witnessed a notable divergence, with newly launched products focused on Solana and XRP gaining significant traction, while established Bitcoin and Ethereum funds experience substantial outflows. According to data from SoSo Value, the new altcoin ETFs have collectively recorded over $500 million in inflows in less than a month, highlighting investors’ growing interest in assets beyond the market leaders.
The Solana ETFs, launched in October, saw total inflows of $382.05 million in just three weeks. The three funds managed by Grayscale, Bitwise, and VanEck now manage more than $541.31 million in combined assets. Meanwhile, the demand for the newer XRP product has proven similarly robust, with the spot XRP ETF launched by Canary Capital raising $250 million on its first day of trading, with a volume of nearly $60 million.
Altcoin ETFs Outperform Expectations
Nate Geraci, co-founder of ETF Institute and President of NovaDius Wealth, emphasized the importance of product performance, stating that the Canary XRP ETF has posted the highest first-day trading volume of over 900 new ETF launches this year. He noted that this was further evidence that the performance of spot crypto ETFs has consistently and significantly exceeded the expectations of the traditional financial sector. Geraci also pointed out that while skepticism from the “old guard” of traditional finance remains high, investor capital is the key measure of success.
Geraci’s comments are supported by the data, which shows that spot crypto ETFs have consistently outperformed expectations and dominated the list of top ETF launches over the past two years. The success of these altcoin ETFs is a testament to the growing interest in alternative cryptocurrencies and the increasing demand for diverse investment opportunities in the crypto space.
Bitcoin and Ethereum ETFs Experience Significant Outflows
In contrast to the altcoin ETFs, US-based spot Bitcoin ETFs have seen significant outflows of more than $3 billion in the three weeks ended November 14. The outflows started at $798 million in the week ended October 31, accelerated to $1.2 billion in the week ended November 7, and continued with another loss of $1.1 billion in the week ended November 14. Ethereum ETFs experienced a similar trend, losing a total of more than $1.2 billion over the same period.
James Butterfill of CoinShares noted that recent declines in Bitcoin and Ethereum ETFs are related to macro-level concerns, stating that “we believe the combination of monetary policy uncertainty and crypto-native whale sellers are the primary reasons for this recent negative sentiment.” The outflows from Bitcoin and Ethereum ETFs are a significant development, with BlackRock’s funds responsible for around 50% of redemptions, and IBIT and ETHA collectively losing more than $2 billion.
Despite the recent decline, a review of IBIT’s institutional ownership showed a 15% increase in the number of institutional holders in the third quarter of 2025. Total institutional ownership rose 1% to 29%, with sovereign wealth and UAE ownership at 2.14% and 4.1%, respectively. This suggests that while there may be short-term fluctuations, there is still significant interest in Bitcoin and Ethereum from institutional investors.
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