$440 million flows out of Bitcoin and Ethereum... Institutional funds pour into XRP and Solana

Source: TokenPost Original Title: Bitcoin and Ethereum see $440 million outflow… Institutional funds flow into XRP and Solana Original Link: Last week, $440 million was withdrawn from digital asset products, while XRP and Solana experienced clear inflows driven by ETF effects. Bitcoin and Ethereum are showing strong rotation phenomena.

In digital asset investment products, a large amount of $440 million( approximately 6,404 billion KRW) was withdrawn last week. Since mid-October, the cumulative outflow has reached $3.2 billion( approximately 4.592 trillion KRW). While large sums of money have exited Bitcoin(BTC) and Ethereum(ETH), XRP and Solana(SOL) have shown notable contrast with continued institutional inflows due to ETF(Exchange-Traded Fund) listings.

UK asset management firm CoinShares(CoinShares) analyzed in a report that these divergent flows are continuing. Last week, $430 million( approximately 635.5 billion KRW) exited from Bitcoin products, and $59.5 million( approximately 85.3 billion KRW) from Ethereum products. Meanwhile, XRP saw a net inflow of $70.2 million( approximately 100.6 billion KRW), and Solana received $7.5 million( approximately 107 billion KRW). This continues the inflow trend that started following the US ETF launch in mid-October.

Since the launch of XRP ETF, a total of $1.07 billion( approximately 1,535.6 billion KRW), and for Solana ETF, $134 million( approximately 192.2 billion KRW) have been recorded, showing a trend that surpasses major assets. During the same period, Bitcoin products saw an outflow of $2.8 billion( approximately 4.164 trillion KRW), and Ethereum products saw $1.6 billion( approximately 2.295 trillion KRW), indicating strong rotation phenomena.

The ‘Bitcoin Trust’ of a competing asset management firm attracted $25 billion( approximately 35.862 trillion KRW) this year alone, ranking 6th among all ETF inflows, but as its asset value declined, its returns have not escaped negative territory. ETF analysts commented, “If a fund can gather $25 billion( in a bear market, it can see much greater opportunities in a bull market.”

Diverging regional fund flows

Almost all global outflows were concentrated in the US. The US alone recovered $460 million) approximately 659.9 billion KRW( last week, becoming the main center of outflows. In contrast, Switzerland experienced a slight outflow of $14.2 million) approximately 20.4 billion KRW(, while Germany recorded a net inflow of $35.7 million) approximately 51.2 billion KRW(. Germany has been absorbing $248 million) approximately 355.7 billion KRW( over December, strengthening its buy strategy during the downturn.

The chief investment officer of a cryptocurrency asset management firm stated, “The current Bitcoin trend is a long-term upward trajectory,” and “A much lower volatility than previous cycles has begun a decade-long growth journey.” He emphasized that this structure is markedly different from the past downturns when institutional net buying exceeded 60%.

Bitcoin shows slight weakness… “Worst year-end trend”

Bitcoin is currently hovering around $87,800) approximately 125.92 million KRW(. It is fluctuating between the key support level of $85,000 and resistance at $93,000, showing the worst year-end trend in the past 7 years. Typically, year-end sees increased volatility due to profit-taking and portfolio adjustments, but this year, trading volume has sharply declined, and the market is ending with sideways movement.

In derivatives markets, signs of tightening are emerging. Recently, the open interest in Bitcoin and Ethereum perpetual futures contracts dropped by $3 billion) approximately 43.035 trillion KRW( and $2 billion) approximately 28.69 trillion KRW( overnight. The atmosphere of year-end risk reduction has led traders to adopt a wait-and-see approach.

The chief investment officer of a cryptocurrency asset management firm predicted continued volatility in future prices. He said, “Bitcoin is likely to bottom out in the $71,000) approximately 1.185 million KRW( to $84,000) approximately 1.2048 million KRW( range, and then rise to $145,000~$160,000) between 2026 and 2027.” However, he added that if it falls below $69,000( approximately 989.2K KRW), the scenario needs to be revised.

Ethereum turns positive on staking after 6 months

A notable change is in Ethereum###Ethereum### staking flows. The previously sustained withdrawal dominance over the past 6 months has reversed, with deposit waiting amounts surpassing withdrawal waiting amounts. Currently, about 745,619 ETH are waiting to be deposited, while withdrawal waiting is only 36,512 ETH. This is seen as a new supply-demand shift that could help ease Ethereum selling pressure and may signal price stabilization recovery.

Market interpretation

Rotation from Bitcoin and Ethereum to alternative assets like XRP and Solana is becoming more evident. The launch of ETFs and year-end asset rebalancing are intensifying polarization among digital asset market items.

( Strategic points

Institutional inflows into XRP and Solana are likely to continue for the time being. Some regions are using price declines as buying opportunities. Bitcoin requires preparation for a short-term downturn followed by a rebound scenario.

) Terminology

• ETF(Exchange-Traded Fund): A fund product traded like stocks, tracking specific assets(e.g., Bitcoin) price
• Open Interest(Open Interest): The total number of outstanding derivative contracts yet to be settled
• StakingStaking: The process of depositing cryptocurrency into a blockchain network to earn rewards