Funds Flock to XRP and Solana ETFs…Institutional Money Leaving Bitcoin Moves to Alts

Institutional funds have been rapidly flowing into spot exchange-traded funds (ETFs) for XRP (XRP) and Solana (SOL), increasing expectations of further gains for the two assets.

On the 25th (local time), crypto-focused media outlet DL News reported, "The newly listed XRP and SOL ETFs in the U.S. recorded net inflows of about $955 million over a one-month period." Over the same period, Bitcoin and Ethereum ETFs saw net outflows of about $3.7 billion and $1.6 billion, respectively, creating a contrast.

Ray Youssef, CEO of NoOnes, said, "Regulated ETF products act as a channel to expand institutional exposure to assets beyond Bitcoin," and "This flow will lift XRP and Solana prices by about 33% and 10%, respectively."

Analysts have suggested that XRP could rise to $2.50 and Solana to $160. As of the 25th, XRP was trading around $2.20 and Solana around $136.

Recent comments by Federal Reserve officials about the possibility of rate cuts, which have increased risk-on sentiment, are also seen as contributing to the rise in demand for altcoin ETFs. According to CME FedWatch, the probability of a rate cut in December has risen to the 80% range.