Solana and XRP ETFs Launch Amid Market Challenges

By: Eva Baxter

The recent launch of Solana and XRP exchange-traded funds (ETFs) has garnered significant attention within the cryptocurrency industry. Bitwise's Solana Staking ETF (BSOL) and Canary Capital's spot XRP ETF (XRPC) showed promise with record volumes of $56 million and $58 million respectively on their debut days in 2025. Despite these strong starts, both SOL and XRP have seen considerable price drops shortly after, with SOL sliding from $205 to $140 and XRP slipping to $2.20.

These ETFs were launched during a challenging period in the crypto market, characterized by profit-taking and a risk-off sentiment, rather than new external investment. The high volume observed in these ETFs represents a significant exchange of shares between existing players within the market, including arbitrageurs and market-makers, rather than fresh capital inflow which would buoy prices. CoinShares data suggests net inflows were robust but not impactful enough to make a dent given the extensive market size.

Moreover, the overall crypto market has been undergoing a bearish phase. Bitcoin, one of the largest cryptocurrencies, has seen a reversal of its 2025 gains, falling by about 22% from its peak in October. Despite Solana and XRP ETFs indicating strong relative performance, broader de-risking trends in the market overshadowed these gains. Total trading volume for the ETFs seems to be driven more by rotation within the crypto assets rather than new interest.

The price expectations individuals had from the ETF launches were not realized due to the macroeconomic landscape. Analysts like Coach JV have contextualized the lack of upward momentum for XRP prices, pointing towards a larger economic framework impacting prices. Although the innovation provided by ETFs is crucial for the market, these new financial instruments alone cannot avert cyclic downturns or solve macroeconomic challenges faced by crypto assets.