The market is bleeding – So why are Solana and XRP ETFs doing well?

Key Takeaways

Why are Solana and XRP ETFs seeing green during a market downturn?

Because institutions appear to be accumulating regulated exposure while prices are discounted.

What do these inflows say about market sentiment?

They show far less panic than perceived, with ETFs acting as stabilizers.

The past few weeks have been rough for crypto. So when Solana [SOL] and Ripple [XRP] ETFs launched during the downturn, everyone expected the same thing: heavy selling and weak demand.

But that’s not what happened, though. Both ETFs pulled in hundreds of millions of dollars within days. That matters.

If money is flowing in while prices are falling, big investors may be buying the dip, not running from it.

How much real panic is actually in this market?

It’s unusual to see major ETFs debut at a moment like this…

When Bitcoin [BTC] ETFs arrived in 2021, they launched into optimism. When Ethereum [ETH] futures went live, the market was at least steady.

Solana and XRP, meanwhile, stepped into a drawdown with thinned-out liquidity, and investors who are already on edge. As Ray Youssef, CEO of NoOnes, told AMBCrypto,

“…but this time, the launches are colliding with tight liquidity, low investor confidence and pronounced market underperformance.”

That context makes their early performance more striking. Instead of freezing up, both ETFs have attracted meaningful inflows. It could mean accumulation from institutions taking advantage of discounted prices. Or it could also mean a more cautious rotation, where investors prefer regulated exposure while avoiding direct spot volatility.

Youssef added that ETFs arriving now are either terribly timed or the perfect stress-test. And in a sentiment-starved market, he argued they might end up mattering more precisely because conditions are weak.

“For the first time, retail and institutional investors can gain brokerage-integrated exposure to a diversified set of high-beta altcoins at scale.”

This, he says, would help the digital asset market “unlock new capital inflows from traditional channels” that “previously avoided direct token exposure.”

These inflows shouldn’t exist

XRP’s ETF opened with roughly $250 million on its first trading day – the strongest ETF debut of the year – and kept pulling in money for six straight sessions. Its total net assets was $628.62 million at the time of writing, even though XRP itself was trading at just $2.24.

Source: SoSoValue

Solana showed a similar pattern. Its ETF recorded multiple $50-70 million inflow days, with smaller but steady entries in between. The product’s total net assets have climbed to $843.81 million, despite SOL trading around $139 in a defensive setup.

Source: SoSoValue

What stands out in both charts is the tone of the inflows. These are measured allocations that build over days, typical of institutions setting positions.

When inflows rise while prices fall, who is actually buying?

What are big investors doing?

ETF flows are hard to disguise. They move publicly, and in amounts that usually have to do with institutional hands. The inflows mean that larger allocators are stepping in to accumulate into weakness, secure regulated exposure, or rebalance while prices remain discounted.

There’s a split here: retail traders are reacting by impulse, while institutions appear to be treating it as an entry point. ETFs act as liquidity stabilizers. They absorb sell-side pressure and steady the market even when sentiment is flat lining.

But the allocations aren’t evenly distributed.

Solana and XRP are attracting different kinds of flows, so there’s definitely a difference between the two ecosystems.

This is where the story starts to diverge

Even if prices remain shaky, this ETF cycle has already changed the way the market thinks.

The confidence that these ETF listings give could reverse sentiment precisely because the environment is fragile. Inflows rising while prices fall build a foundation that can matter in stabler times.

From here, the levels are straightforward. If ETF demand holds, Solana reclaiming $150, XRP pushing toward $3, and Ether returning above $3,200 all become reasonable scenarios. But none of that is guaranteed. This depends on persistent inflows, a steadier macro backdrop, and BTC finding support.

Weak prices revealed where the money is REALLY going, and that alone changes how Solana and XRP fit into the next phase of the market.