Altseason ETFs are showing unusual, almost countercyclical behavior: Solana and XRP ETFs are absorbing strong inflows even as the broader crypto market undergoes a sharp sell-off. Solana vehicles have already accumulated nearly $500 million in net inflows, while XRP products follow closely with around $410 million —despite SOL falling over 30% and XRP dropping more than 20% in the past month.
Selective institutional rotation amid market turbulence
This capital shift reflects something deeper than noise. It suggests a selective institutional rotation toward regulated wrappers, rather than a general return of retail appetite. Major managers like Bitwise and Canary Capital helped push volumes to record levels at launch. Canary Capital’s spot XRP ETF (XRPC), for example, posted a surprising $245 million in first-day inflows, according to launch data.
Far from being an isolated case, this pattern shows strong inflows into altcoin ETFs while Bitcoin and Ethereum products face notable outflows. The trend points to a reallocation of institutional risk within crypto, not necessarily the arrival of new fiat capital. The derivatives market reinforces this view: Solana and XRP futures on CME have seen open interest surge past $3 billion in aggregate by October 2025, a number that signals growing institutional leverage and participation.
This divergence between ETF demand and declining spot prices can be explained by well-known market mechanics. First, pre-launch hype often pushes prices up prematurely, paving the way for a “sell-the-news” response once the product goes live. And second, market makers and authorized participants create pressure on spot markets as they hedge ETF exposure by buying and selling the underlying assets —a dynamic that can mute or even reverse spot price movements despite strong ETF inflows.
What we’re seeing is less a broad altcoin recovery and more a sort of “ETF altseason”. The inflows signal institutional conviction in both the ETF structures and the medium-term outlook for Solana —valued for its high throughput and low fees— and XRP, known for its efficiency in cross-border payments. This aligns with the broader narrative of institutional adoption and the rapid growth of derivatives markets. On the regulatory side, Bloomberg analysts assign a 90% to 95% probability to the approval of spot Solana and XRP ETFs, and regulators have already withdrawn some delay notices, accelerating potential timelines.
Ultimately, these inflows into Solana and XRP ETFs —despite falling spot prices— reveal an early, targeted institutionalization of the altcoin sector. It’s a reshuffling of risk, not a sudden expansion of crypto exposure. All eyes now turn to the autumn 2025 approval window, which could determine whether these persistent inflows finally translate into upward pressure on spot prices.
