US spot altcoin exchange-traded funds recorded daily inflows on Monday, amid a broader cryptocurrency market sell-off that has pushed overall sentiment into fearful territory.
Solana Spot ETFs have attracted $843.81 million in total net assets since their inception, and on Monday recorded inflows of $57.99 million, according to data from SoSoValue. Similarly, XRP spot ETFs have raised $628.82 million, attracting a whopping $164.04 million in inflows on the same day.
This sustained demand is due to capital rotation based on risk management and greater regulatory clarity, experts said. Decipher.
“This is a combination of selective investor interest and risk management,” said Czhang Lin, director of LBank Labs. Decipher. This suggests that many investors are holding their positions for the long term, treating the current sell-off as an opportunity rather than a signal to exit, Lin explained.
The divergence between altcoins is stark.
While Solana and XRP ETF products saw sustained daily inflows, CoinShares’ weekly report highlights a key difference between the two. Solana recorded outflows of $156 million last week, while XRP broke the trend with $89 million in inflows.
“Solana has recently experienced technical and network challenges, which increases the perceived risk,” the LBank Labs analyst said, explaining the discrepancy. “However, XRP benefits from both institutional interest and regulatory optimism, making it more attractive for entries.”
Franklin Templeton’s XRP spot ETF, XRPZ, debuted on the New York Stock Exchange Arca on Monday, which is another reason for the discrepancy.
XRP Jumps as Franklin Templeton Unveils Latest Crypto ETF
This contrasting dynamic is a hallmark of a cautious market.
“In the current risk-averse environment, assets with clearer and less speculative narratives tend to hold up better,” said Rachel Lin, CEO and co-founder of SynFutures. Decipher. “Investors are likely reallocating rather than simply abandoning cryptocurrencies entirely.”
The success of these products is building a new avenue for institutional capital.
“The newly regulated pathways for institutional capital through ETF products are like pipelines connecting the huge TradFi pool to the digital asset ecosystem,” said Alexis Sirkia, President of Yellow Network. Decipher.
The odds of a Federal Reserve rate cut have soared to around 70%, according to CME’s FedWatch tool over the weekend. Risk sentiment has improved, extending Bitcoin’s weekend bounce into the week, according to a previous report. Decipher report.
Sentiment around the prospects of a rate cut is reflected in the Myriad market prediction, owned by Decipher parent company Dastan, where users assign an 82% chance that the Federal Reserve will cut rates by a quarter point on December 10.