Crypto ETF flows: Ethereum turns negative, XRP leads with $89.6M inflows
The cryptocurrency market kicked off December with a downbeat mood as negative sentiments prevailed.
At the same time, yesterday’s inflows data confirmed a divided landscape among leading spot exchange-traded funds (ETFs), which have become the primary indicator of institutional appetite in digital currencies.
Bitcoin records four successive days of inflows
Bitcoin extended its winning streak to four days with a modest $8.48 million spot ETF inflows on December 1 (SoSoValue data).
While the latest figure might not be as robust as previous epic days, it reflects institutional confidence in BTC despite underperforming prices.
Part of the momentum comes from expectations that the Fed will lower interest rates in the upcoming meeting, a move that would bolster risk assets.
Furthermore, enterprise-level traders and investors quietly position themselves ahead of possible upside catalysts.
Most importantly, inflows into Bitcoin ETFs confirm that investors still perceive the crypto as a safer anchor amid broader uncertainty.
Bitcoin is trading at $86,500 after consolidating over the past week.
Ethereum ends 5-day inflow run
While Bitcoin celebrated another optimistic day, the Ethereum spot ETF recorded significant outflows of $79 million on December 1.
That saw its 5-day streak end abruptly.
Such a performance has sparked debates, as many expected Ethereum to maintain an upward trajectory ahead of the much-awaited Fusaka upgrade.
Meanwhile, Ethereum spot outflows could suggest participants rotating to other assets that appear lucrative in the short term.
Indeed, new altcoin ETFs have seen immense demand lately as institutional players diversify their portfolios.
ETH trades at $2,790 after losing over 3% the past seven days.
BitMine continues to capitalize on Ethereum’s bearish prices to accumulate at a discount.
Solana sees the largest ETF outflows
Solana ETFs saw their largest-ever outflows after a massive debut that saw inflows in more than 20 days.
The altcoin attracted negative flows for the first time on November 26 at $8.2 million.
Meanwhile, SOL ETFs’ underperformance comes as robust gains, signaling profit-taking among early investors.
CoinShares’ withdrawal also impacted the momentum.
XRP steals the show
Ripple’s native token stood out with a staggering $89.65 million in spot ETF inflows.
The impressive performance has stunned the market as it coincides with uneven broader sentiment.
XRP ETFs have generated optimism among institutional investors, especially after the asset gained regulatory clarity in the US.
Meanwhile, the striking difference with Ethereum cements the narrative that investors could be rotating to newer altcoin ETFs amid portfolio diversification.
XRP is trading at a crucial support after shedding 2.5% and 8% of its value over the past day and week.
Other altcoin ETFs, Dogecoin, Litecoin, and HBAR, recorded minor activity as of December 1.
Meanwhile, the latest ETF statistics indicate a divided market that’s responding to various narratives, shifting priorities, and expectations.
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