The BTC ETF recorded $60.48 million in withdrawals on December 8th. The Ethereum fund continued its recent momentum with $35.49 million in inflows. XRP and Solana ETFs closed higher yesterday amid strong demand.
The digital token space remains volatile ahead of the Federal Reserve’s interest rate decision on December 10th.
Cryptocurrency exchange-traded funds, which have become essential in gauging institutional investors’ appetite for these risky assets, are a testament to the current uncertainty.
Despite IBIT gains, Bitcoin ETFs suffer from outflows
Interest in the BTC ETF remained negative yesterday, with the product recording net outflows of $60.48 million (SoSoValue data).
The large-scale withdrawals came as investors reacted to a weak performance across the crypto industry over the weekend.
Bitcoin failed to break above $92,000 again and is currently trading at $90,150.
However, Monday was not a dark day for all BTC ETF issuers.
BlackRock proved its resilience and dominance by attracting $28.76 million in inflows into IBIT.
While funds such as Graycale’s GBT (-44.03 million) and Fidelity’s FBTC (-39.44 million) saw large withdrawals on December 8, IBIT’s strength suggests that profit-taking, rather than a change in interest, was likely driving the mixed inflows into Bitcoin.
Ethereum ETF turns positive
While Bitcoin fell on December 8th, the Ethereum exchange-traded fund turned positive with $35.5 million in inflows.
Notably, the fund posted significant exits in the past two sessions, December 4th (-41.5 million) and December 5th (-75.2 million).
In fact, Ethereum has recently gained attention from investors following the Fusaka upgrade, which aims to increase speed, scalability, and reduce costs for the Ether-based Layer 2 platform.
Furthermore, this influx shows that investors see Ethereum as a legitimate token for portfolio diversification beyond Bitcoin.
In fact, the second-largest cryptocurrency by value is attracting renewed interest from institutional investors.
For example, BlackRock is seeking SEC approval for its new staked ether trust ETF (ETHB).
The proposed product differs from BlackRock’s popular Ether Trust in that the Staking Ether Trust tracks the performance of Ethereum and includes incentives earned from the trust’s staking Ether.
ETH is up over 10% in the past seven days and is trading at $3,124.
Stable demand is expected for Solana ETF
Solana’s spot product recorded an inflow of $1.2 million at the previous day’s close.
While this number remains modest, it reflects consistent demand for the SOL ETF.
Monday’s inflow extended the winning streak to three days and shows appetite for these products despite widespread turmoil.
The Solana exchange-traded fund has raised about $639 million since its debut in late October.
Meanwhile, SOL price has fallen 2% in the past 24 hours and is hovering at $133.
XRP ETF steals the show
On December 8th, Ripple’s crypto assets outstandingly recorded net inflows of $38.04 million, outpacing its peers on that day.
On Monday, GXRP raised over $810,000 in new funding, led by Grayscale.
Canary, Bitwise, and Franklin’s XRP exchange-traded funds also posted notable daily gains.
Regulatory clarity and XRP’s unique utility in cross-border trading have increased the altcoin’s appeal among institutional investors.
Nevertheless, the ETF’s performance on December 8th sends a clear message.
Investors are now diversifying into other cryptocurrencies besides Bitcoin.
As the cryptocurrency industry gains acceptance in the mainstream financial arena, altcoin ETFs are gaining attention for their additional benefits.
