XRP, Solana, and Ethereum Lead as Altcoin ETFs Gain Strong Inflows

TLDR

• Five new altcoin ETFs, including Grayscale Dogecoin and Franklin XRP, are set to launch in early December.
• XRP, Solana, and Ethereum ETFs are seeing strong capital inflows, with XRP ETFs reaching $420 million in inflows in just six days.
• Experts predict more than 100 additional altcoin ETFs will launch within the next six months.
• Solana ETFs are bucking the trend of Bitcoin outflows, recording a $57.99 million net inflow over the past 24 hours.
• Ethereum’s upcoming Fusaka upgrade is expected to increase token value capture, boosting demand for Ethereum-based ETFs.

Five altcoin exchange-traded funds (ETFs) are set to launch in early December, boosting investor interest in altcoins like Solana (SOL), Ethereum (ETH), and XRP. The upcoming listings follow the recent debuts of the Fidelity Solana Fund and the Canary Marinade Solana ETF. These new altcoin ETFs include the Grayscale Dogecoin ETF, Grayscale XRP Trust, Franklin XRP ETF, Bitwise DOGE ETF, and the Grayscale Chainlink Trust.

Bloomberg senior ETF analyst Eric Balchunas forecasts that the debut of these ETFs marks only the beginning. He expects more than 100 altcoin ETFs to launch in the next six months. According to James Seyffart, an expert ETF analyst, over 150 more altcoin ETFs are in the pipeline.

Altcoin ETFs Seeing Increased Demand in the Market

Recent data highlights a surge in capital flowing into altcoins through ETFs. Over the past 24 hours, Solana ETFs recorded net inflows of $57.99 million. Ethereum and XRP also saw substantial gains, with inflows of $96.6 million and $164.04 million, respectively. This comes in stark contrast to Bitcoin’s decline, which recorded a $151.08 million outflow.

The market’s growing appetite for altcoin ETFs signals a shift in investor preference. VanEck’s Matthew Sigel attributes Bitcoin’s selloff to tightening liquidity and broader market factors. In contrast, Bitwise CIO Matt Hougan believes that Bitcoin’s retreat offers opportunities for altcoins to gain value. “Tokens are getting much better at capturing value,” Hougan stated, pointing to Ethereum, UNI, and XRP as examples of tokens benefiting from this trend.

XRP ETFs Record Impressive Debut Numbers

XRP’s growth in ETF markets is noteworthy, with the U.S. XRP ETFs posting six consecutive days of inflows exceeding $420 million. The first day of trading saw inflows of over $250 million, marking the best ETF debut performance of the year. Ray Youssef, CEO of NoOnes, stated that ETFs are providing a stable liquidity buffer, absorbing the selling pressure that has affected other crypto assets, such as Bitcoin.

The strong performance of XRP ETFs is consistent with the growing interest in altcoins. Youssef further noted that the ETF inflow trend reflects a shift toward more diversified altcoin exposure. With ETFs integrating brokerage access, retail and institutional investors now have easier access to high-beta altcoins.

Solana, Ethereum, and Other Altcoins Gaining Traction with ETFs

As altcoin ETFs continue to debut, Solana (SOL) stands out as a leading example of ETF-driven growth. ETFs tied to Solana are bucking the outflow trend seen in Bitcoin ETFs, a sign of the altcoin’s rising appeal. The upcoming December launch of the Fusaka upgrade for Ethereum is also expected to boost token value capture, benefiting Ethereum’s altcoin ETFs.

Investors are becoming increasingly focused on the potential for altcoins like XRP to benefit from changes in token economics. Youssef added that the focus on value capture through staking mechanisms could redefine the economics for altcoin holders in the future.

As altcoin ETFs continue to roll out, experts predict an uptick in market activity for these tokens. The entry of new ETFs could fuel a broader altcoin rally, especially if Bitcoin stabilizes in the coming months. Many anticipate that altcoins such as Ethereum and Solana could see substantial price increases by the end of the year.

“Altcoin ETF season could trigger an end-of-year rally,” Youssef concluded. “If ETF demand remains strong and macro volatility eases, Ethereum could surpass $3,200, XRP could hit $3, and Solana may reclaim $150.” As more altcoin ETFs hit the market, their influence on token prices and broader market dynamics is expected to intensify.

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Source: https://blockonomi.com/xrp-solana-and-ethereum-lead-as-altcoin-etfs-gain-strong-inflows/