Solana News Today: Institutions Shift to XRP ETFs as Fee Waivers and Regulatory Clarity Edge Out Solana

XRP ETFs Are Outpacing Solana as Institutional Demand Shifts to Low-Cost Alternatives

According to Cryptoslate, XRP ETFs are outpacing Solana as institutional demand shifts to low-cost alternatives.

The race for dominance in the U.S. altcoin ETF market has taken an unexpected turn, with XRP products surging past Solana to capture a significant share of institutional capital. In under 10 trading days, XRP ETFs have attracted $587 million in inflows, eclipsing Solana's $568 million over a month-long period. This shift is being driven by aggressive fee waivers from major providers, which are reshaping the dynamics of the crypto market.

Franklin Templeton's XRPZ fund, which debuted on Nov. 24, has played a pivotal role in this shift. The fund's 0.19% sponsor fee, waived entirely on the first $5 billion in assets until May 2026, has made it a zero-cost option for institutional allocators. Grayscale's GXRP fund has mirrored this strategy, waiving fees for the first three months. These moves have unlocked a surge of capital, with XRP ETFs adding $164 million in a single session following the launch of these funds.

In contrast, Solana ETFs, which had led the altcoin ETF charge since their Oct. 28 debut, have seen mixed results. While they amassed $840 million in assets, they also faced $156 million in outflows last week, according to CoinShares. Analysts attribute this divergence to Solana's recent technical challenges and the growing appeal of XRP's regulatory clarity. "XRP is benefiting from both institutional interest and regulatory optimism, making it more attractive for inflows," said Czhang Lin, head of LBank Labs.

The price action further highlights the contrast. XRP has risen 10% since Nov. 24, breaking above the $2 psychological barrier, while Solana's ETF inflows have coincided with a 30% price correction. On-chain data from Glassnode indicates that XRP's rally is being fueled by ETF-driven demand, which is absorbing $50 million to $100 million daily in legacy supply. This non-price-sensitive demand is creating a structural shift, turning historical resistance levels into accumulation floors.

Market observers are now recalibrating expectations for XRP ETFs. At current inflow rates, the complex could reach $1.5 billion in assets by year-end, with a "bull case" scenario projecting $2 billion by early 2026 if institutional adoption accelerates. Meanwhile, Solana's appeal lies in its native staking yields of 5%–7%, which have attracted $369 million in November inflows as investors seek yield-bearing assets.

The broader crypto market is also seeing infrastructure developments that could amplify altcoin demand. Coinbase's acquisition of Vector, a Solana-based onchain trading platform, is expected to enhance the exchange's speed and liquidity for Solana assets. Similarly, PrimeXBT's integration of Solana has expanded its offerings to include faster, lower-cost transactions, further broadening institutional access.

With the Federal Reserve's December rate decision looming, sentiment remains cautiously optimistic. A 70% probability of a rate cut has boosted risk-on sentiment, though experts caution that any rally will be selective. "Altcoins with strong structural stories and institutional access are likely to outperform," said Rachel Lin, CEO of SynFutures.

As the ETF landscape evolves, the competition between XRP and Solana underscores a broader shift in institutional preferences-from speculative bets to yield-generating and low-cost alternatives. Whether this trend sustains into 2026 will depend on regulatory developments, yield dynamics, and the Fed's monetary policy.