ETF Launches Break Records — But SOL and XRP Prices Still Sink

Strong ETF Debuts, Weak Market Reaction

Bitwise’s Solana Staking ETF (BSOL) saw $56 million in first-day activity, while Canary Capital’s spot XRP ETF (XRPC) hit $58 million, marking the two busiest ETF launches of 2025.

But despite the impressive launch-day numbers, both SOL and XRP slid shortly afterward. SOL, which traded near $205 just before its ETF went live, dropped to $165 within a week — and now trades closer to $140.

XRP slipped roughly 7% within two days of its own debut, falling from around $2.40–$2.50 into the low $2.20 range. The ETFs themselves continue to report positive share creations even as the underlying tokens hit multi-month lows.

Why High ETF Volume Doesn’t Mean New Buying Pressure

Those eye-catching “record volume” headlines don’t mean huge amounts of new money entered SOL or XRP. ETF volume mainly reflects shares being traded between market participants, not fresh capital pouring in.

Much of that activity came from:

• quick rotations from traders repositioning their exposure

• arbitrage desks hedging ETF trades by shorting SOL or XRP, which actually pushes prices lower

• market-makers balancing liquidity

  
  

Net inflows — which represent actual new demand for the underlying assets — were solid but small compared to overall market size.

Solana investment products brought in about $421 million during one week, with more than $100 million afterward. The XRP ETF posted $245 million in day-one creations, though XRP-linked funds later recorded $15.5 million in outflows.

In markets where token valuations are already in the tens of billions, these inflows simply don’t move prices immediately.

Launching Into a Market Drawdown

These ETFs debuted in one of the toughest windows of the year. Since mid-October, Bitcoin has erased most of its 2025 climb, dropping over 22% from its peak around $126,000.

During that same period:

• spot Bitcoin ETFs shifted from massive inflows to heavy redemptions

• tech stocks and risk assets weakened

• crypto investors rotated capital rather than adding new money

  
  

Solana and XRP ETFs look strong only relative to a shrinking ETP market. Their inflows are coming from inside crypto, not from new institutional capital entering from the outside.

The “Expectations Tax” Hits Altcoins

Both SOL and XRP rallied aggressively ahead of their ETF listings.

SOL climbed from about $177 to over $203 in anticipation, boosted by bullish forecasts and leverage piling in.XRP had its own run-up on every regulatory step, from Nasdaq approval to the final 8-A filing, before selling off on launch day — a textbook sell-the-news move.

By the time the ETFs actually launched, much of the bullishness had already been priced in. Early buyers simply used the liquidity of ETFs to exit their positions.

Why ETFs Don’t Override the Market Cycle

The “paradox” of record ETF interest and falling token prices ultimately isn’t a paradox at all. A few simple forces explain the disconnect:

• The products are legitimate successes, generating historic launch days.

• They arrived late in the cycle, after a long run-up in altcoin prices.

• Macro conditions turned hostile, affecting everything from BTC to equities.

• ETF mechanics are slow, and most launch-day activity doesn’t trigger spot buying.

  
  

The key question now is what happens next.If ETF inflows continue and Bitcoin stabilizes, these products could eventually become meaningful price drivers.

But if crypto remains stuck in a rotation phase — with old capital just moving between tickers — then ETFs may keep growing without lifting SOL or XRP in the short term.

For now, the launches show that new financial wrappers don’t rewrite market cycles. They simply become another arena where those cycles play out.