This month has witnessed a notable shift in the cryptocurrency exchange-traded fund (ETF) landscape, primarily characterized by a pronounced divergence in capital flows. Recent data from SoSo Value highlights a substantial influx of investments into newly launched ETFs tracking altcoins, specifically Solana and XRP, at the same time that established Bitcoin and Ethereum funds are experiencing large-scale outflows.
The newly introduced altcoin ETFs have collectively attracted over $500 million in inflows within a month, signifying a growing appetite among investors for assets beyond the traditional leaders in the crypto market. Solana ETFs, which began trading in October, have pulled in an impressive $382.05 million in just three weeks. These funds, managed by prominent firms like Grayscale, Bitwise, and VanEck, now oversee a total of over $541.31 million in assets, according to SoSo Value.
In addition, the market response to the newly launched XRP ETF has been overwhelming, with Canary Capital’s product drawing $250 million on its first day of trading, alongside a healthy trading volume of nearly $60 million. Nate Geraci, co-founder of the ETF Institute and President of NovaDius Wealth, emphasized the ETF’s exceptional debut, which had the highest trading volume on its opening day among over 900 ETF launches this year. He asserted that this performance showcases how spot crypto ETFs have consistently outshone the expectations set by the traditional finance sector.
Conversely, Bitcoin and Ethereum have endured significant outflows in recent weeks. Over a three-week period ending November 14, Bitcoin ETFs saw gross outflows surpassing $3 billion. Outflows began with $798 million for the week ending October 31, escalating to $1.2 billion the following week, and another $1.1 billion in the week after. Ethereum ETFs mirrored this trend, experiencing total outflows exceeding $1.2 billion during the same timeframe.
James Butterfill at CoinShares attributes these outflows to broader macroeconomic concerns, stating that factors such as monetary policy uncertainty and sales from major crypto stakeholders, or “whales”, have contributed to this downturn. BlackRock’s funds were indirectly tied to approximately 50% of these redemptions, particularly through significant withdrawals from the IBIT and ETHA products, which together lost over $2 billion.
Despite the withdrawal of funds, there are some encouraging signs within institutional ownership metrics. A Q3 2025 report indicated a 15% increase in the number of institutional holders for the IBIT ETF, leading to a total institutional ownership rise of 1% to 29%. Ownership stakes held by Sovereign Wealth Funds and UAE investors also marked notable percentages at 2.14% and 4.1%, respectively.
Although the current market dynamics suggest challenging times ahead for Bitcoin and Ethereum, the enthusiasm for altcoin ETFs presents a promising shift in investor sentiment, highlighting the evolving landscape of the cryptocurrency market.