Crypto ETFs Play "Game of Thrones": XRP and Solana ETFs Continue to Attract Funds, Are Institutions Abandoning Bitcoin?

In 2025, the US ETF market achieved a historic “triple crown,” with net capital inflows reaching as high as $1.4 trillion, over 1,100 new products launched, and a total trading volume of $57.9 trillion. However, beneath this prosperity, the crypto asset ETF sector is experiencing a fierce rotation of funds. Bitcoin and Ethereum ETFs faced significant outflows in December, totaling over $1.1 billion; in stark contrast, newly launched XRP and Solana ETFs continued to attract capital, with XRP ETF setting an astonishing record of 28 consecutive trading days of net inflows. This phenomenon clearly indicates that beyond the grand narrative of ETFs, institutional investors are becoming more selective than ever, shifting their focus from mere “digital gold” to crypto assets with clear regulation and real-world utility. The market’s structural shift may have quietly begun.

The Glory of the ETF “Triple Crown” and Echoes of History

In 2025, the US ETF market drew global capital attention with an unprecedented feast. The so-called “triple crown” refers to simultaneous record highs in net capital inflows, new product launches, and total trading volume. Specifically, $1.4 trillion flowed into ETF products, over 1,100 new ETFs were issued, and the total market trading volume reached an astonishing $57.9 trillion. The last time such a feat occurred was in 2021, driven by tech stock mania. The engine behind this “triple crown” was the three consecutive years of double-digit gains in the S&P 500, especially the massive capital expenditure in AI-related sectors, injecting strong momentum into the market.

However, amidst Wall Street’s celebration, some have begun quietly discussing the possibility of “the end of the party.” Echoes of history often serve as a sober reminder to overheated markets. After the 2021 “triple crown,” the subsequent 2022 saw the S&P 500 plunge 19% due to aggressive Federal Reserve rate hikes. At that time, the tech rally driving ETF inflows sharply reversed, causing both the pace of new product issuance and fund inflows to plummet. Now, a similar script seems to be brewing. Since October, as Wall Street began questioning the returns on massive AI-related capital spending by tech giants, the S&P 500 has entered a high-level sideways consolidation, with market sentiment turning cautious.

Bloomberg Intelligence senior ETF analyst Eric Balchunas issued a clear warning: “Just because this year seems perfect for ETFs, you need to be prepared.” He pointed out that a “reality check” triggered by market volatility or leveraged ETF liquidations could arrive in 2026. Such risks are not unfounded; for example, a 3x short AMD ETF under GraniteShares lost 88.9% in one day and was liquidated in October, exemplifying the dangers leveraged products face in volatile markets. Therefore, despite the current brilliance of the ETF market, investors must remain vigilant about potential cyclical reversals.

The “Ice and Fire” Inside Crypto ETFs: Bitcoin Bleeding, XRP Leading

Beneath the grand narrative of the global ETF market, the crypto ETF sector is playing out a highly polarized “Game of Thrones.” Since the beginning of the year, Bitcoin spot ETFs like BlackRock’s IBIT have been the biggest winners, attracting a total of $25.4 billion, despite a -9.6% return, making it the only product among the top ten in traffic to show negative gains. Balchunas jokingly called this phenomenon “a lesson in HODL (long-term holding) for the baby boomer generation.” However, since Bitcoin’s price dropped 30% from its October high, sentiment has shifted. IBIT has experienced five consecutive weeks of net outflows totaling $2.7 billion. Ethereum ETFs also followed suit, with seven days of continuous outflows in December, totaling $685 million.

In stark contrast to the bleeding of Bitcoin and Ethereum, newly launched alternative crypto ETFs have performed remarkably well. The US spot XRP ETF, launched on November 13, set a record of 28 consecutive trading days of net inflows, an unprecedented feat for all crypto ETFs in their early days. It accumulated $1.14 billion in inflows, with no single day of outflows. Meanwhile, Solana ETF also performed well, attracting $750 million despite SOL’s price dropping 53% from its high, with some outflow days in late November and early December.

Key Data Revealing the Full Picture of Capital Rotation

To better illustrate this capital migration, we consolidated key data: from the start of the year to December 24, Bitcoin ETFs accumulated inflows of $25.4 billion, but between December 1 and 24, experienced net outflows of $629 million, with five consecutive weeks of outflows. Ethereum ETFs have seen inflows of $10.3 billion year-to-date, but in December, net outflows reached $512 million. In stark contrast, XRP ETFs have accumulated inflows of $1.14 billion since launch, with December net inflows of $470 million, maintaining a record of 28 consecutive days of inflows. Solana ETFs received $750 million in inflows, with December net inflows of $13.2 million, despite a 53% price decline in the same period. These figures, sourced from BeInCrypto, precisely outline the shift in institutional preferences.

December’s market data acts like a mirror, clearly reflecting the overall picture of this capital rotation. As of December 24, Bitcoin ETFs experienced net outflows of $629 million, Ethereum ETFs net outflows of $512 million; meanwhile, XRP ETFs saw net inflows of $470 million, and Solana ETFs net inflows of $132 million. This inverse pattern is not mere market noise but indicates a profound adjustment in institutional crypto asset allocation strategies. Capital is no longer blindly chasing the largest market cap leaders but is reallocating based on more refined criteria.

Structural Shift or “Honeymoon Effect”? The Deep Logic Behind Capital Rotation

Market analysts are divided into two camps regarding the current crypto ETF capital rotation. One believes it signifies a structural shift in institutional preferences. The core drivers are regulatory clarity and real-world utility. For example, XRP reached a $1.25 billion settlement with the SEC in August, settling the case and clarifying its non-security status. This regulatory “green light” cleared the biggest obstacle for institutional funds seeking compliance and avoiding uncertainty. Similarly, Solana’s high throughput and thriving DeFi and NFT ecosystems provide narratives beyond mere value storage.

The other camp, skeptics, argue that the continued inflows into XRP and Solana ETFs may simply be a “honeymoon effect” typical of new ETF launches. History shows many new products experience a wave of inflows initially due to market attention and allocation needs, but this trend may not sustain long-term. A notable divergence is that, despite strong inflows into XRP ETFs, XRP’s price remains 50% below its July peak; SOL’s price has also fallen 53% since October. This divergence between price and capital flows can partly be attributed to year-end profit-taking pressure and some “whale” addresses distributing chips during institutional buying, offsetting some demand.

A deeper analysis reveals that these two views are not mutually exclusive; they may together depict the full evolution of the market. In the short term, the “honeymoon effect” may amplify inflows. But in the long run, regulatory clarity and project fundamentals (such as technological adoption and ecosystem activity) will be the key determinants of capital’s ultimate direction. The increased selectivity of institutional investors itself signals that the crypto market is transitioning from a wild frontier driven by narratives and speculation to a more mature stage driven by fundamentals and risk management. Even if this is just a short-term adjustment in a long-term trend, its significance should not be underestimated.

Outlook for 2026: More Products, More Choices, and the Ultimate Market Test

Looking ahead to 2026, the crypto ETF market is destined to become even more lively. Dozens of crypto ETF applications are still awaiting SEC approval, and more alternative crypto (altcoin) products are expected to enter mainstream finance. This will provide investors with richer allocation tools and intensify competition among crypto asset ETFs. The market will test whether the inflows into XRP and Solana are fleeting trends or the beginning of a sustained shift.

In any case, 2025’s “perfect year” for ETFs will be recorded alongside warnings of potential corrections. For the crypto world, the fierce internal capital rotation may carry far more significance than surface market fluctuations. It strongly suggests that institutional investors are no longer content with Bitcoin and Ethereum as the sole representatives of crypto assets. They are employing more complex evaluation frameworks, actively seeking new targets that combine regulatory safety and practical application potential. This shift from “β” (market-wide returns) to “α” (excess returns) marks a deepening of market maturity and depth.

Therefore, for ordinary investors, tracking ETF fund flows is no longer just about following hot topics. It becomes an important window into the movements of “smart money” and the logic of institutions. The market in 2026 will be the ultimate test of crypto asset fundamentals, regulatory environment, and macroeconomic resilience. Will capital flow back into Bitcoin and Ethereum, the “cornerstones,” or further disperse across a broader crypto ecosystem? This will serve as a key indicator for the next phase of the entire crypto market. In this era of divergence and choice, only by deeply understanding the logic behind capital can one better navigate future waves.