Why Capital Is Flowing Into XRP, SOL, and HYPE Instead of BTC and ETH

In times when investors are pulling funds out of the spot exchange-traded funds tracking ETH and especially BTC, their behavior toward XRP, HYPE, and SOL has been entirely contrasting.

The ETFs following the three altcoins’ performances continue to see more net inflows even as the market stagnates and uncertainty builds.

XRP, SOL, HYPE ETFs Keep Gaining Capital

CryptoPotato has repeatedly reported on the Ripple ETFs’ impressive performance over the past several weeks, in which most assets, including XRP, recorded fresh losses and dipped to multi-year lows. However, investors using the Wall Street-trading financial vehicles have remained active, with net inflows dominating for months. In fact, there have been only two weeks in the red since mid-March.

The last one, which had only four trading days, also ended in the green. The ETFs attracted $2.82 million on Monday, $5.30 million on Tuesday, and $2.55 million on Thursday. Since Wednesday was a $0.00 day, according to SoSoValue data, that means that the week ended with net inflows of $10.66 million. The cumulative net inflows have tapped a new all-time high of $1.45 billion.

The Solana ETFs also attracted over $7 million in net inflows in the past week, following a red one with $2.58 million in net outflows. HYPE and its ETFs continue to be the current market superstar. The funds saw their third-best week to date, with almost $28 million entering. Moreover, the HYPE ETFs have been on a six-week streak of net inflows since their inception in mid-May.

Their performance has been particularly promising since they have attracted nearly $185 million in net inflows in six weeks. The same six weeks have been highly emotional and full of FUD for the entire crypto market, especially June’s start when most assets tumbled to multi-year lows.

BTC, ETH ETFs Deep in Red

And while the aforementioned altcoins continue to enjoy fresh ETF capital, the same cannot be said for the funds tracking the two largest cryptocurrencies by market cap. As reported earlier, the spot BTC ETFs bled more than $226 million in the past week, and are down by roughly $5 billion in the same six weeks in which the HYPE and XRP ETFs have been only in the green.

The spot Ethereum ETFs are in no better shape. In fact, they are on the same six-week negative streak, pushing the total inflows down by nearly $1 billion. So the question now is whether investors are simply seasonally rotating from larger-cap digital assets into smaller altcoins, or have they completely abandoned BTC and ETH for the new kids on the block.

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