XRP News Today: XRP ETF Surges as Price Falls: The Altcoin Paradox Defying Crypto's Downturn

Generated by AI AgentCoin WorldReviewed byAInvest News Editorial Team
Friday, Nov 21, 2025 8:30 am ET1min read
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Aime RobotAime Summary

- XRP ETFXRPI-- (XRP) and SolanaSOL-- ETFs (BSOL) saw record inflows in 2025 despite crypto market declines, contrasting Bitcoin/Ethereum ETF outflows.

- XRPXRP-- ETF's $250M debut used SEC-approved in-kind redemption model, enabling direct XRP token swaps but failing to boost price amid 8.72% 24-hour drop.

- Analysts attribute price divergence to market-wide BitcoinBTC-- crashes, large XRP holder sales, and ETF fee waivers accelerating capital entry without immediate price gains.

- Sustained altcoin ETF inflows ($118M XRP, $46M Solana) signal capital reallocation toward growth narratives, though long-term success depends on regulatory clarity and institutional adoption.

The XRPXRP-- and SolanaSOL-- ETF markets have shown resilience amid broader crypto market turbulence, with inflows into these funds contrasting sharply with the record outflows seen in BitcoinBTC-- and EthereumETH-- ETFs. Canary Capital's XRP ETFXRPI--, which launched on Nov. 14, 2025, set a new benchmark for the year, securing $250 million in inflows and $58 million in trading volume on its first day. This performance outpaced all other 2025 ETF launches, including Solana's own BSOLBSOL-- ETF, which collected $57 million. The XRP fund's success was driven by its in-kind creation and redemption model, approved by the SEC in July 2025, which allowed investors to swap ETF shares directly for XRP tokens, bypassing cash transactions and inflating inflow figures beyond trading volume.

Despite the ETF's strong debut, XRP's price fell 8.72% in 24 hours, closing at $1.91. Analysts attributed the drop to broader market weakness, as Bitcoin plunged to $84,000 and triggered cascading liquidations across derivatives exchanges. Additionally, large XRP holders sold around 200 million tokens within 48 hours of the ETF launch, exacerbating downward pressure. The disconnect between the ETF's inflows and the asset's price performance has raised questions about market structure, with some experts noting that the ETF's 0.34% fee waiver for the first $500 million in assets is accelerating capital entry but not immediately translating to bullish price action.

The XRP ETF's performance highlights a broader trend: while Bitcoin and Ethereum ETFs hemorrhaged $1.8 billion in a single week, Solana and XRP funds bucked the trend with sustained inflows. Solana ETFs added $46 million in net inflows over the week, marking their third consecutive positive week, while XRP funds attracted $118 million. This divergence suggests a strategic shift in institutional and retail capital toward altcoins with perceived growth narratives, even as major crypto benchmarks struggle.

Market observers remain cautious, however. Eric Balchunas, Bloomberg's ETF analyst, called the XRP ETF the "top launch of 2025" but noted that the fund's immediate price impact was muted by a "market-wide de-risking event". Similarly, Grayscale's GSOL and Bitwise's BSOL Solana ETFs have maintained momentum, with the latter securing $33.97 million in inflows for the week. Analysts argue that the XRP ETF's long-term success will depend on institutional adoption and regulatory clarity, with many expecting meaningful price effects to materialize in 2026.

As the crypto market navigates a volatile landscape, the XRP and Solana ETFs have become focal points for investors seeking exposure to altcoins amid uncertainty. While Bitcoin's recent underperformance has spooked traders, the sustained inflows into XRP and Solana products suggest that capital is not exiting the sector entirely-just reallocating to assets with perceived upside.

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