TLDR

  • The US ETF market registers $1.4 trillion in inflows in 2025 despite the struggles of Bitcoin.
  • Crypto ETFs such as XRP experience strong inflows while Bitcoin ETFs encounter outflows in December.
  • 2025 marks the initial year of a simultaneous record for ETF inflows, launches, and volume.
  • Altcoin ETFs like XRP and Solana witness significant inflows despite market volatility.

The reached unparalleled levels in 2025, achieving a historic triple crown in inflows, launches, and trading volume. This milestone follows three consecutive years of double – digit gains in the S&P 500, with tech stocks, especially AI – driven investments, leading the rally. The market’s rise has prompted Wall Street to evaluate what’s next, considering the lessons learned from 2022, when the market witnessed a sharp reversal.

The triple crown, which consists of $1.4 trillion in inflows, more than 1,100 new launches, and a record $57.9 trillion in trading volume, denotes a peak in market performance. This is the first time since 2021 that all three of these metrics have simultaneously reached new highs. However, with some of the same conditions as 2021, there is increasing concern about what might follow in 2026.

Ghost of 2022: Parallels to Past Market Trends

Looking back, 2021 was a year of exuberance in the ETF market. The rally, largely powered by tech stocks, came to a stop in 2022 when the Federal Reserve started aggressively raising interest rates. This led to a substantial 19% drop in the S&P 500, and ETFs that had benefited from the tech – driven growth experienced a sharp decline.

Eric Balchunas, senior analyst at Bloomberg Intelligence, pointed out the potential risks of the market’s current “perfect” conditions. Although 2025 has been robust for ETFs, Balchunas cautioned that volatility could return in 2026, with potential risks from leveraged ETF products. One such instance is the GraniteShares 3x Short AMD ETP, which lost 88.9% in a single day and was liquidated in October.

The Crypto ETF Rotation: Bitcoin Faces Outflows, XRP Soars

A key trend within the broader ETF boom is the growing divergence in cryptocurrency – related ETFs. Despite a negative return of – 9.6%, BlackRock’s IBIT ETF, which tracks Bitcoin, attracted $25.4 billion in inflows. However, following Bitcoin’s 30% drop from its October peak, IBIT has recorded outflows, totaling $2.7 billion over five consecutive weeks. Ethereum ETFs have also faced outflows, losing $512 million as of December 24.

On the other hand, altcoin like XRP and Solana have seen positive momentum. XRP, in particular, has been outstanding, with the newly launched US spot XRP ETF registering an unmatched 28 consecutive days of net inflows. The ETF’s cumulative inflows reached $1.14 billion without a single outflow day. Similarly, Solana ETFs have seen $750 million in inflows, even though the price of Solana’s SOL token has dropped by 53%.

Structural Shift or Temporary Adjustment in Crypto ETFs?

As the ETF market continues to exhibit record performance, some investors are questioning if this represents a structural shift or a temporary adjustment. A key factor in this shift is regulatory clarity, especially regarding cryptocurrencies. XRP, for example, settled its lawsuit with the SEC in August, resulting in the classification of the token as a non – security. This has led to a renewed interest in its utility, with cross – border payments gaining attention as a potential use case.

Similarly, Solana’s focus on decentralized finance (DeFi) applications is regarded as another example of a crypto asset with real – world utility, distinct from Bitcoin’s image as “digital gold.” Despite these developments, skeptics warn that the consistent inflows into XRP and Solana could reflect the typical “honeymoon” effect often seen with new ETF launches. While their inflows have been impressive, XRP’s price remains 50% below its July peak, and Solana has had its own share of price volatility.