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Institutional Shift: Bitcoin and Ethereum See Outflows as XRP and Solana Gain Favor
Recent trends in the cryptocurrency market have shown a significant shift in institutional investment strategies. Institutional investors have recently divested a substantial portion of their holdings in Bitcoin and Ethereum, evident from the notable outflows observed in crypto funds. Interestingly, XRP and Solana have emerged as standout performers, recording net inflows during the same period, marking a fascinating trend in the altcoin market.
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Bitcoin and Ethereum Face Outflows, XRP and Solana Attract Inflows
A comprehensive report by CoinShares highlights that Bitcoin and Ethereum funds experienced net outflows amounting to $719 million and $409.4 million, respectively, last week. In contrast, XRP and Solana witnessed net inflows of $93.1 million and $291 million, underscoring a significant shift in institutional investor preferences.
This trend is particularly noteworthy as XRP and Solana’s inflows have surged compared to the previous week, where they recorded inflows of $69.4 million and $127.3 million, respectively. This rotation from Bitcoin and Ethereum to XRP and Solana occurs in anticipation of the potential approval of spot ETFs for these altcoins in the United States.
Potential ETF Approval: A Boon for XRP and Solana
According to insights from Bloomberg analyst Eric Balchunas, the SEC is likely to approve the pending ETF filings for XRP and Solana, as both cryptocurrencies meet the criteria outlined under the recently sanctioned generic listing standards. The odds of approval are now considered to be very high, providing an optimistic outlook for these digital assets.
The expected approval of XRP and Solana ETFs is anticipated to positively impact their respective prices. This potential surge in value is drawing institutional investors to seek exposure to these assets ahead of the SEC’s decision. Historically, Bitcoin and Ethereum have experienced significant price gains following the launch of their spot ETFs in the U.S., further solidifying a bullish forecast for XRP and Solana.
Expert Opinions on XRP and Solana ETF Demand
Market experts, including Nate Geraci, have suggested that the XRP and Solana ETFs might see substantial demand. Geraci emphasizes that the investor interest in these ETFs is likely underestimated and anticipates a strong market reaction upon their approval.
Solana ETFs: A Step Ahead in the Approval Process
Bloomberg analyst Balahunas has highlighted that the final deadlines for Solana ETFs are slated for October 10, with XRP ETFs following on October 17. Consequently, Solana ETFs could potentially receive approval prior to XRP ETFs, although simultaneous approval by the SEC remains a possibility.
Geraci has also referred to a report suggesting that the approval of Solana ETFs could realistically occur within the next week. However, he cautions that a U.S. government shutdown might disrupt the approval process. The ongoing government shutdown has already impacted the SEC’s operations, potentially leading to delays if the funding bill is not enacted promptly.
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