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Bitcoin and Ethereum ETFs See Outflows as Solana and XRP Attract Fresh Capital

By

Vandit Grover

Vandit Grover

Let’s uncover why crypto ETF flows turned mixed as Solana and XRP gained while Bitcoin and Ethereum saw outflows, what does it signal next?

Bitcoin and Ethereum ETFs See Outflows as Solana and XRP Attract Fresh Capital

Quick Take

Summary is AI generated, newsroom reviewed.

  • Crypto ETF flows turned mixed on December 29 with BTC and ETH seeing outflows while SOL and XRP gained

  • Bitcoin and Ethereum outflows reflected profit booking and portfolio rebalancing pressures

  • Solana and XRP inflows highlighted rising interest in scalable and utility focused networks

  • Spot crypto ETFs continue shaping institutional crypto demand through selective capital rotation

Crypto markets witnessed another telling shift on December 29 as investor money moved selectively across spot crypto ETFs. While Bitcoin and Ethereum ETFs recorded net outflows, Solana and XRP products attracted fresh inflows. These movements highlight changing risk preferences among investors navigating a volatile year end environment.

The latest crypto ETF flows show investors trimming exposure to legacy digital assets while selectively increasing allocations to alternative layer one and payment focused tokens. This rotation suggests investors remain active but increasingly tactical. Rather than exiting the market entirely, capital appears to be repositioning toward perceived growth opportunities.

Such mixed crypto ETF flows often reflect broader sentiment shifts across institutional portfolios. With macro uncertainty, interest rate expectations, and regulatory clarity shaping decisions, ETF flow data offers valuable insight into where confidence currently lies. The December 29 numbers reinforce this evolving market dynamic.

How December 29 ETF Flows Played Out Across Major Cryptocurrencies

On December 29, spot crypto ETFs displayed a clear divergence in investor behavior. Bitcoin ETFs recorded net outflows of $19.29 million. Ethereum ETFs followed with outflows totaling $9.63 million. These figures indicate near term caution toward the two largest digital assets.

In contrast, Solana spot ETFs attracted inflows of $2.93 million. XRP ETFs saw even stronger demand with net inflows of $8.44 million. Although smaller in absolute terms, these inflows reflect growing interest in selective altcoin exposure.

The uneven crypto ETF flows show investors making deliberate choices rather than broad market bets. Capital shifted within the digital asset ecosystem instead of leaving it altogether. This internal rotation signals strategic positioning ahead of 2026.

Why Bitcoin and Ethereum ETFs Faced Selling Pressure

Bitcoin and Ethereum ETFs often act as barometers for overall market confidence. Recent outflows suggest investors locked in profits following strong multi week performance. Many funds also adjusted exposure before year end portfolio rebalancing.

Another factor influencing crypto ETF flows is rising competition from alternative assets. Higher yielding opportunities in equities and bonds may have temporarily diverted institutional capital. This pressure remains especially visible in Bitcoin ETFs due to their large scale holdings.

Ethereum ETFs also faced challenges as investors weighed network upgrade timelines and fee dynamics. Although long term conviction remains intact, short term uncertainty influenced allocation decisions. These factors combined to push net outflows during the session.

Solana ETFs Benefit From Growth Narrative and Network Momentum

Solana ETFs attracted inflows as investors responded to renewed optimism around the network’s ecosystem growth. Rising developer activity and expanding decentralized applications boosted confidence. These developments strengthened Solana’s appeal among growth oriented investors.

Spot crypto ETFs tied to Solana also benefited from its reputation for scalability and lower transaction costs. Institutional crypto demand often follows narratives tied to real world adoption and technical performance. Solana currently checks both boxes.

The steady inflows reinforce Solana’s position as a serious competitor within the smart contract space. Crypto ETF flows indicate that investors increasingly view Solana as a strategic diversification asset rather than a speculative trade.

What to Watch Next for Crypto ETF Markets

Future crypto ETF flows will depend heavily on macroeconomic signals and regulatory developments. Interest rate expectations and liquidity conditions remain critical drivers. Policy announcements could quickly reshape flow trends.

Network level fundamentals will also influence investor preferences. Assets demonstrating consistent growth and real world utility may attract sustained inflows. Solana and XRP currently benefit from these narratives.

Market participants should monitor ETF data closely as it often leads broader price movements. Flow trends frequently reveal sentiment shifts before they appear on price charts.

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