Bitcoin ETFs Lose $60.4M While Altcoins Like XRP and Solana Gain

TLDR

• US spot Bitcoin ETFs experienced a net outflow of $60.48 million on Monday.
• Grayscale’s GBTC and Fidelity’s FBTC funds saw the largest outflows of $44.03 million and $39.44 million.
• Ripple XRP ETFs attracted over $900 million in institutional capital since their launch.
• XRP’s four ETFs recorded a single-day inflow of $38.04 million, the largest for any altcoin ETF.
• Solana’s FSOL fund posted $1.18 million in inflows, with total capital reaching $640.06 million since October 28.

The US spot Bitcoin exchange-traded funds (ETFs) experienced a net outflow of $60.48 million on Monday. Despite BlackRock’s IBIT fund contributing $28.76 million in inflows, the overall sentiment remains bearish. This marks a continued trend of investors shifting funds to other digital assets.

Grayscale and Fidelity Bitcoin ETFs See Large Outflows

Grayscale’s GBTC ETF saw the highest outflows, losing $44.03 million in a single day. Fidelity’s FBTC fund followed closely behind with $39.44 million in outflows. These withdrawals reflect a broader trend of investors seeking alternatives to Bitcoin amid price volatility.

The market’s focus seems to be shifting, with many turning to altcoins as a potential safe haven. The growing interest in these alternative investments has led to an increase in capital flows into other crypto ETFs. As Bitcoin’s volatility continues, some investors see altcoins as more stable options.

Ripple XRP and Solana ETFs Attract More Capital

Ripple XRP’s spot ETFs have seen over $900 million in institutional investments since their launch last month. The recent surge highlights a growing preference for XRP amid Bitcoin’s uncertainty. On Monday alone, XRP’s four funds attracted $38.04 million in inflows, the largest single-day gain for any altcoin ETF.

Solana, another rising star in the altcoin space, also experienced a surge in ETF inflows. Fidelity’s FSOL fund led the charge with $1.18 million in net inflows. Since Solana’s debut on October 28, the total inflows have reached $640.06 million, showcasing its growing appeal.

XRP and Solana have both demonstrated strong price movements, with XRP rising sharply at the start of December. Despite a recent dip to $2.05, XRP continues to trade with strong support. Solana, on the other hand, has risen by nearly 5% in the past week, reaching $133.16.

Bitcoin’s Outlook Remains Strong Despite ETF Outflows

Despite the outflows from Bitcoin ETFs, the long-term outlook for Bitcoin remains intact. According to Bitwise Asset Management’s Katherine Dowling, the crypto ETF sector is expected to continue growing. Dowling noted that altcoin funds, including those for Solana and XRP, show strong fundamentals and are likely to drive future growth.

Bitfinex analysts have also expressed confidence in Bitcoin’s long-term prospects. They believe that as more large investors use Bitcoin ETFs as entry points, the market for Bitcoin will stabilize and deepen. This rebalancing points to a future where Bitcoin ETFs are a stable store of value.

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