XRP ETFs Face Closure as Solana Funds Struggle

Spot Ripple ETFs End Prolonged Winning Streak as Solana Funds Face Persistent Outflows

Just weeks after highlighting significant positive net inflows for exchange-traded funds (ETFs) tracking XRP and Solana (SOL), the landscape for these digital asset investments has dramatically shifted. Spot Ripple ETFs have experienced their first down week in months, while Solana’s counterparts have extended their outflow streak to a full ten consecutive days.

The past week proved challenging across the board for spot cryptocurrency ETFs, with Bitcoin and other funds also reporting substantial outflows. The financial vehicles designed to track Ripple’s cross-border payment token began the trading week with minimal activity, mirroring the sluggish pace of the previous week, reporting zero net flows.

The first notable movement occurred on Wednesday, a day that saw hotter-than-expected inflation data released. Despite this, the funds managed to attract just over $740,000. However, investor sentiment shifted on Thursday, leading to outflows of $104,510. Friday saw the week’s sole multi-million dollar transaction, with net flows surging to $2.47 million.

Despite this late surge, the five-day trading period concluded in negative territory for XRP ETFs, with a total of $1.84 million withdrawn. This marks the first down week for XRP ETFs since the period ending July 10, breaking a remarkable 13-week streak of positive net inflows. This reversal is a stark contrast to just three weeks ago, when the same ETFs reported net inflows exceeding $75 million.

The underlying XRP asset also faced pressure over the past week, being rejected at the $1.40 level and subsequently falling to $1.27, where it found some support over the weekend.

Solana ETFs are facing an even more difficult situation, closing out their worst week on record in terms of net outflows, with $25.52 million exiting the funds. This figure surpasses the previous week’s anti-record of $24.81 million. A particularly concerning trend is that SOL ETFs have recorded only a single day of positive inflows since September 29, with a modest $1.30 million entering on October 2.

On Friday alone, these ETFs saw outflows exceeding $12.6 million. Over the past two weeks, total net inflows have decreased from $1.62 billion to $1.56 billion.

These significant outflows appear to be impacting the underlying Solana asset. The token faced resistance at $110 this week and dipped to the $101-$102 range on multiple occasions. While it has managed to stay above the $100 mark, the overall market sentiment has deteriorated considerably in recent weeks, raising concerns that a breach below $100 could be imminent.