Recent trends show that institutional interest is shifting from Bitcoin to altcoins, particularly XRP and Solana. This is coinciding with the introduction of new exchange-traded funds (ETFs) that provide easier access to these cryptocurrencies in the United States.

Institutions Favor XRP and Solana Over Bitcoin

A report from CoinShares has revealed that institutional investors are making significant moves into XRP and Solana while reducing their Bitcoin exposure. Notably, Solana recorded inflows amounting to $421 million, a figure only surpassed by previous high performances, attributed to the newly launched U.S. Solana ETFs. In contrast, XRP attracted $43.2 million in new investments. Interestingly, Bitcoin ETFs experienced a substantial outflow of $946 million, marking it the sole cryptocurrency to face a decline in investment.

The outflow from Bitcoin funds has been linked to the recent remarks by Fed Chair Jerome Powell, whose comments after the FOMC meeting led to increased market anxiety regarding future interest rate policies. Conversely, the influx of funds into XRP and Solana reflects a growing interest following the debut of the altcoin-focused ETFs.

Newly launched ETFs from Bitwise and Grayscale have reported impressive initial inflows, with SoSoValue data indicating that these Solana funds alone gathered nearly $200 million within their first week. In stark contrast, Bitcoin ETFs faced a staggering outflow of close to $800 million within the same timeframe.

According to Bloomberg analyst Eric Balchunas, the Solana ETF from Bitwise took the lead, outperforming all other crypto ETFs during the week, including those linked to Bitcoin from major players like BlackRock. This shift in momentum appears to have contributed to a downward trend in Bitcoin’s price, keeping it below the critical $110,000 threshold.

Anticipated Launch of XRP ETFs

There is considerable optimism surrounding XRP as anticipation builds for the possible launch of a spot XRP ETF by November 13. Canary Capital has made an update on its S-1 filing that clears the way for this launch, with estimates suggesting it could bring in between $5 and $10 billion within its first month. This influx could significantly enhance the XRP sector.

Additionally, both Grayscale and Bitwise have put forward revised proposals for their own XRP ETFs, likely aiming for a similar roll-out strategy to that employed for the Solana ETFs. As highlighted by Balchunas, these issuers appear to be avoiding the back-and-forth negotiations that characterized the Solana ETF discussions with the SEC, which may hasten approval processes.

How the XRP ETFs will position themselves on the market alongside those for Bitcoin, Ethereum, and Solana remains uncertain. Yet market expert Nate Geraci believes their demand will be substantial, especially considering the interest XRP has garnered among institutional investors through mechanisms like CME futures and futures ETFs.