The current uncertainty in the cryptocurrency market is not necessarily good news for US spot crypto ETFs. Nevertheless, the recently launched funds for Ripple’s XRP are enjoying success, outperforming Solana by a factor of 3 over the same period.
XRP ETFs outperform those applied to Solana’s SOL by a factor of three
After months of waiting, the US SEC finally decided at the end of the year to approve the first spot crypto ETFs other than those already in place for Bitcoin and Ethereum. This VIP club now includes Solana’s SOL cryptocurrency, Dogecoin (DOGE), and more recently Ripple’s XRP.
Bitwise’s BSOL fund quickly posted what was presented as the best start of the year for this sector, but that was before the market opened up to Ripple’s XRP, whose very first ETF launched by Canary Capital would explode onto the scene a few weeks later.
This dominant position will be reinforced by the arrival of other ETFs, to the point of posting the best results in terms of net inflows, with assets under management now estimated at over $920 million since their launch, which is three times better than Solana’s SOL over the same period, with $270 million.
The ETF boom is set to continue
This success for US spot XRP ETFs bucks the general trend in the exchange-traded crypto fund market, with spot SOL ETFs already recording their first net outflows since the end of November, while Bitcoin and Ethereum ETFs continue to record massive outflows over the last few weeks.
This complicated situation is not critical, according to Bitwise Asset Management Director Katherine Dowling. She believes that “the ETF boom will continue,” particularly for XRP and SOL, which are based on “promising fundamentals,” with the prospect of new launches that could drive prices higher.
All crypto projects are pushing for issuers to launch ETFs because it benefits their tokens by increasing demand and therefore price. Others will follow.
Katherine Dowling
