Bitcoin News Today: Investors Bet on XRP's Utility as Altcoin Giants Lose Ground

The altcoin market is undergoing a pronounced shift in sentiment, with XRP-based exchange-traded funds (ETFs) dominating inflows while large-cap cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) face historic realized losses. This divergence highlights evolving investor preferences and growing uncertainty in the broader crypto landscape.

On Monday, Grayscale and Franklin Templeton's U.S. spot XRP ETFs-GXRP and XRPZ-garnered $67.4 million and $62.6 million in net inflows, respectively, outpacing their BTC, ETH, and SOL counterparts. Combined with inflows from smaller XRP funds, the category totaled $164.1 million in single-day inflows, a stark contrast to Bitcoin ETFs, which saw $151.1 million in outflows. This performance underscores XRP's rising institutional appeal, with Franklin Templeton's David Mann describing it as a "foundational role in global settlement infrastructure". Meanwhile, Grayscale's DOGE ETF, launched the same day, attracted no flows, suggesting investors remain cautious about meme coins.

The success of XRP ETFs contrasts sharply with the struggles of other major altcoins. On-chain data reveals ETH, SOL, and XRP are experiencing their highest 7-day average realized losses since April 2025, with SOL at 74.84% of its supply in losses. Glassnode's Percent Supply in Profit metric shows a steady decline for these assets, indicating growing pain for holders. Santiment analysts note that while short-term losses persist, metrics like MVRV ratios suggest undervaluation, potentially signaling a path for recovery.

Market dynamics are further complicated by waning institutional confidence. Solana ETFs, which had maintained a 20-day inflow streak, recorded their first net outflow of $8.2 million amid declining network activity and total value locked (TVL). The Upbit hack, which saw $36 million stolen from Solana wallets, has exacerbated volatility, prompting liquidity freezes and amplifying sell pressures.

Despite these challenges, some analysts remain cautiously optimistic. Altcoin Vector, a Swissblock report, posits that a Bitcoin-driven market rebound could catalyze altcoin recovery, provided BTC stabilizes as seen in April 2025. However, Bitcoin itself faces headwinds, with miners in China-resurging as a mining hub-struggling against regulatory uncertainties.

The XRP ETF surge reflects a broader shift toward assets with perceived utility in global finance. Franklin Templeton's XRPZ and Grayscale's GXRP have not only outperformed Bitcoin ETFs but also set records as the largest ETF debuts of 2025. This momentum is unlikely to reverse immediately, given the ETFs' $586.8 million cumulative inflows and lack of outflows since launch.

Yet, the altcoin market's fragility persists. With ETH and SOL trading below year-to-date highs and BlackRock prioritizing BTC/ETH funds, investors are recalibrating risk profiles. Privacy and neobank coins are gaining traction as alternatives, signaling a potential reallocation of capital.