Bitcoin News Today: Investors Redirect Capital to Altcoins as BTC, ETH ETFs Lose Ground

Bitcoin and Ethereum ETFs have experienced significant outflows in recent weeks, while Solana (SOL) and XRP have attracted fresh inflows, reflecting shifting investor priorities in the volatile crypto market. The contrasting trends highlight a growing appetite for alternative cryptocurrencies with strong utility and growth potential, even as traditional heavyweights face pressure from macroeconomic and regulatory headwinds according to Canary Capital's analysis.

Canary Capital Group LLC's XRPC ETF, which provides exposure to XRP, set a record for the highest first-day trading volume of any 2025 ETF launch, reaching $59 million on November 17. The fund closed its debut with approximately $250 million in assets under management (AUM), underscoring demand for simplified access to digital assets. Steven McClurg, CEO of Canary Capital, attributed the success to "insatiable demand" for diversified crypto exposure, noting that the firm's other spot ETFs-covering Solana (SOLC), Litecoin (LTCC), and Hedera (HBR)-have also gained traction.

Meanwhile, Bitcoin and Ethereum ETFs have seen a net outflow of $2.9 billion in November, marking the largest monthly withdrawals on record. The iShares Bitcoin Trust ETF, the largest crypto ETF with $72 billion in assets, lost $1.2 billion in the first 17 days of the month alone. Analysts point to a confluence of factors driving the selloff, including mixed signals from the U.S. Federal Reserve on interest rate cuts, margin calls from leveraged positions, and a weakening correlation between bitcoin and gold. David Puell of ARK Invest noted that "whales" holding over 1,000 bitcoin have seen their numbers decline from a peak of 1,500 in November 2024 to about 1,300 in October 2025, signaling profit-taking and reduced confidence in the asset class.

In contrast, Solana and XRP have drawn inflows of $46.34 million and $243.5 million, respectively, in the same period. Investors are increasingly allocating capital to altcoins with strong use cases, such as Solana's high-speed blockchain and XRP's cross-border payment capabilities. The inflows suggest a strategic rebalancing of portfolios, with investors seeking to hedge against volatility in BTC and ETH while capitalizing on emerging opportunities.

The divergent flows underscore a broader shift in investor sentiment. While BTC and ETH remain foundational assets, their dominance is being challenged by projects demonstrating tangible utility and scalability. McClurg emphasized that Canary's focus on "real-world asset settlement and staking rewards" aligns with long-term adoption cycles according to market analysis. As macroeconomic uncertainty persists, the crypto market's ability to adapt to changing dynamics will likely shape the trajectory of ETF flows in the months ahead.