XRP and Solana Lead Altcoin ETP Inflows Amid Shifting Market Sentiment

According to Cointelegraph, XRP and Solana emerged as the leading altcoin-based exchange-traded products (ETPs) in terms of inflows for the week ending March 21. Digital asset investment firm CoinShares reported that while other altcoins experienced modest inflows, XRP and Solana stood out. Polygon (MATIC) recorded inflows of $400,000, and Chainlink (LINK) saw $200,000. However, the overall sentiment towards altcoins remained mixed, with Ether (ETH) experiencing significant outflows totaling $86 million. Other notable outflows included Sui (SUI) and Polkadot (DOT), each with $1.3 million, and Tron (TRX) with $950,000. Despite the substantial outflows from Ether, the digital asset sector managed to reverse a five-week trend of net outflows, achieving inflows of $644 million. Bitcoin (BTC) played a crucial role in this recovery, with inflows reaching $724 million, marking its largest net inflow since January. Ethereum, on the other hand, has faced net weekly outflows for four consecutive weeks. CoinShares highlighted that the majority of inflows originated from the United States, accounting for $632 million, largely driven by BlackRock’s iShares Bitcoin Trust (IBIT). Positive sentiment extended beyond the U.S., with Switzerland leading other regions with $15.9 million, followed by Germany with $13.9 million and Hong Kong with $1.2 million. While altcoins collectively experienced a net outflow primarily due to Ethereum’s performance, Solana and XRP emerged as standout performers. In the case of Solana, the U.S. market is set to introduce its first Solana futures exchange-traded funds (ETF), potentially paving the way for a future spot Solana ETF. The approval of futures-based ETFs for Bitcoin was initially favored by regulators due to the existence of a regulated market, the Chicago Mercantile Exchange, which provided assurances against potential market manipulation. However, this raised controversy over the SEC’s continued rejection of spot Bitcoin ETFs, which directly hold the cryptocurrency. A pivotal lawsuit by Grayscale successfully challenged this inconsistency, compelling the SEC to revisit its stance and ultimately paving the way for the approval of the long-awaited spot Bitcoin ETFs. Meanwhile, XRP has seen a significant boost following the recent dismissal by the SEC of its long-running lawsuit against Ripple Labs.