Not a Sell-Off, Just a Rotation: BTC and ETH ETFs Lose $1.14B as SOL and XRP Surge
Capital Rotates Inside Crypto ETFs as Investors Shift From Bitcoin and Ethereum to Solana and XRP
US-listed spot crypto exchange-traded funds experienced a notable shift in capital flows last week, signaling a change in investor positioning as the broader digital asset market enters a period of consolidation. While Bitcoin and Ethereum ETFs recorded significant net outflows, funds tied to Solana and XRP continued to attract fresh capital, highlighting a rotation rather than a retreat from crypto exposure.
According to data compiled by Hokanews, spot Bitcoin and Ethereum ETFs posted combined net outflows of approximately $1.14 billion for the week ending December 19, 2025. In contrast, Solana and XRP ETFs extended their inflow streaks, reflecting growing appetite for higher-risk, higher-beta assets amid muted price action in Bitcoin.
The divergence in ETF flows offers insight into how institutional and professional investors are navigating a market that lacks clear short-term direction but remains structurally strong over the long term.
Bitcoin ETFs See Nearly Half a Billion Dollars Exit
Spot Bitcoin ETFs recorded net weekly outflows of roughly $497 million, marking one of the largest weekly pullbacks since their launch. Most issuers saw redemptions as Bitcoin traded sideways near the $88,000 level, frustrating momentum-driven strategies.
Fidelity’s FBTC was the notable exception. The fund added approximately $33 million in net inflows, making it the only Bitcoin ETF to finish the week in positive territory. Market observers suggest Fidelity’s inflows may reflect long-term accumulation by institutions that view recent consolidation as a buying opportunity rather than a warning sign.
The largest source of outflows came from BlackRock’s IBIT, which shed about $240 million during the week. Other issuers reported smaller but steady withdrawals, contributing to the overall negative flow picture.
Despite the outflows, Bitcoin ETFs remain massive in scale. Total assets under management across US-listed Bitcoin ETFs are still estimated near $115 billion. Analysts emphasize that the recent redemptions represent tactical repositioning rather than a loss of conviction in Bitcoin’s long-term thesis.
Notably, Bitcoin’s price showed little reaction to the ETF data. The asset remained range-bound after the figures were published, suggesting that selling pressure was orderly and already priced in.
Ethereum ETFs Face Heavier Pressure
Ethereum ETFs experienced even more pronounced stress. Net weekly outflows reached approximately $644 million, exceeding Bitcoin’s losses and highlighting weaker near-term sentiment toward ETH.
All nine US-listed spot Ethereum ETFs posted net outflows during the week. None recorded inflows, underscoring broad-based selling rather than isolated fund-specific events.
BlackRock’s ETHA led the decline, losing around $558 million across seven consecutive trading days. The fund failed to register a single inflow during that stretch, raising questions about Ethereum’s appeal relative to other large-cap digital assets.
Ethereum’s price remained under pressure throughout the week, though market data showed no signs of widespread forced liquidations. Analysts interpret this as evidence that investors exited positions gradually, reallocating capital rather than reacting to panic or sudden macro shocks.
Some strategists point to Ethereum’s slower narrative momentum as a contributing factor. While long-term fundamentals such as network upgrades and institutional adoption remain intact, near-term catalysts appear limited compared to competing ecosystems.
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| Source: Xpost |
Solana and XRP Extend Strong Inflow Streaks
In sharp contrast to Bitcoin and Ethereum, Solana ETFs recorded $66.5 million in net inflows for the week, marking the eighth consecutive week of positive flows. Fidelity’s Solana ETF led the category, adding nearly $50 million.
XRP ETFs also continued to attract steady demand, pulling in approximately $82 million in net inflows. This extended their inflow streak to six straight weeks. The largest contribution came from 21Shares’ XRP product, which accounted for the bulk of new allocations.
Importantly, neither Solana nor XRP ETFs reported meaningful outflows during the period. The consistency of inflows suggests sustained interest rather than short-term speculative spikes.
Market participants note that Solana and XRP currently benefit from clearer growth narratives. Solana’s ecosystem expansion and performance-focused positioning appeal to traders seeking scalability-driven upside. XRP, meanwhile, has regained institutional interest amid improving regulatory clarity and renewed discussion around cross-border payment use cases.
Investor Rotation, Not Market Exit
Analysts broadly describe the current ETF flow pattern as a rotation rather than a withdrawal from crypto markets. When Bitcoin consolidates and Ethereum underperforms, capital often migrates toward assets perceived to offer higher short-term upside.
This behavior is common during sideways phases in crypto cycles. Investors maintain core exposure to dominant assets while selectively increasing allocations to altcoins with stronger momentum.
Bitcoin and Ethereum remain the foundation of institutional crypto exposure. Their ETFs dwarf newer products in both liquidity and assets under management. The latest flow data reflects tactical adjustments ahead of the next potential market move, not a structural shift away from large-cap crypto.
Macro Backdrop Shapes ETF Behavior
The broader macro environment continues to influence crypto ETF flows. With global markets digesting interest rate expectations and economic data, investors appear cautious about deploying fresh capital into assets lacking clear momentum.
Bitcoin’s consolidation near all-time highs has reduced urgency for immediate exposure, while Ethereum’s relative underperformance has made alternative networks more attractive.
At the same time, the continued presence of large AUM figures across Bitcoin ETFs underscores sustained institutional commitment. Many long-term investors appear content to hold existing positions while reallocating marginal capital elsewhere.
What Comes Next for Crypto ETFs
Looking ahead, analysts expect ETF flows to remain dynamic. A decisive breakout in Bitcoin could reverse outflows quickly, while renewed Ethereum catalysts could stabilize sentiment around ETH products.
For now, Solana and XRP appear to be benefiting from their positioning as high-conviction alternatives during a period of market indecision. Whether this trend continues will depend on broader risk appetite, regulatory developments, and shifts in macro conditions.
As Hokanews continues to track ETF data, one theme stands out clearly. Capital is still flowing into crypto. It is simply moving more selectively, chasing narratives, momentum, and perceived value as the market waits for its next defining move
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