Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Bitcoin News Update: Major Institutions Rush to Zero-Fee XRP ETFs, Outpacing Other Altcoins

Bitcoin News Update: Major Institutions Rush to Zero-Fee XRP ETFs, Outpacing Other Altcoins

Bitget-RWA2025/12/01 13:30
By:Bitget-RWA

- XRP ETFs led altcoin inflows in Nov 2025, with $644M driven by zero-fee products like Franklin Templeton's XRPZ and Grayscale's GXRP . - Bitcoin's dominance grew amid $15.4B options expiry, while Solana ETFs struggled with 30% price corrections and stalled inflows. - CoinShares withdrew its staked Solana ETF due to regulatory hurdles, highlighting challenges in institutional altcoin product development. - Market shifts favor low-cost, regulated vehicles as XRP's $2 breakout and Bybit's liquidity farms si

Shifting Capital Flows in the Crypto Market

As liquidity in alternative cryptocurrencies dries up, investment capital is increasingly gravitating toward Bitcoin. Institutional investors and evolving market forces are playing a significant role in reshaping the digital asset landscape.

XRP ETFs Outperform Solana and Bitcoin

Exchange-traded funds (ETFs) based on XRP have recently outpaced those tied to Solana and Bitcoin, drawing in $644 million in new investments during November 2025, according to DLNews. This surge highlights a broader trend: investors are seeking regulated, cost-effective products as the market experiences widespread outflows and a defensive stance becomes prevalent.

Institutional Demand Fuels XRP Growth

The rapid rise of XRP ETFs, particularly Franklin Templeton’s zero-fee XRPZ fund and Grayscale’s GXRP, has led to capital inflows that surpass Solana’s $568 million monthly total. Franklin Templeton’s decision to waive its 0.19% management fee for the first $5 billion in assets until May 2026 has made their ETF especially attractive to large investors, resulting in a $164 million inflow on November 24 alone. In contrast, while Solana ETFs initially enjoyed 20 straight days of positive inflows, they have struggled to offset a 30% decline in Solana’s price, with new investments failing to spark a recovery.

Altcoin Liquidity Challenges Intensify

The difficulties facing alternative cryptocurrencies are further highlighted by CoinShares’ decision to withdraw its application for a staked Solana ETF in November 2025. The company cited an incomplete structuring agreement and a lack of investor interest, underscoring the regulatory and institutional hurdles for altcoin investment products.

Crypto Market Volatility

Adding to the volatility, South Korea’s Upbit exchange suffered a $36 million security breach attributed to North Korea’s Lazarus group, which further destabilized Solana-linked assets as hot wallets were compromised.

Bitcoin’s Market Leadership Remains Firm

Bitcoin’s dominance was reinforced by the expiration of $15.4 billion in options contracts on December 1, 2025, creating heightened volatility with maximum pain points set at $100,000 for BTC and $1,400 for ETH. Despite a sharp 6% drop in Bitcoin’s price to $85,778 in a single day, the cryptocurrency continues to serve as a safe haven for investors moving away from underperforming altcoins. Glassnode’s on-chain analysis reveals that XRP’s recent surge above $2—driven by ETF demand—has turned previous resistance levels into strong accumulation zones, with daily inflows of $50–100 million.

Strategic Shifts Among Crypto Product Providers

The changing market structure is prompting providers to adapt their offerings. CoinShares, for example, is preparing for a U.S. listing and has shifted its focus to actively managed and thematic investment baskets, moving away from single-asset ETFs. Meanwhile, Bybit’s liquidity farm is attracting mainstream users by offering DeFi yields of 100–600% APY without the need for complex wallet setups. These developments reflect a broader industry move toward greater capital efficiency and institutional-grade solutions.

Looking Ahead: Market Share and Regulatory Trends

As 2025 draws to a close, competition for dominance in the crypto sector will depend on pricing strategies and regulatory compliance. XRP’s achievement of $587 million in inflows and Bitcoin’s continued strength point to a realignment of risk preferences, with altcoin liquidity increasingly concentrated in high-utility, low-cost investment vehicles. Analysts predict that XRP ETFs could reach $2 billion in assets by the end of the year, provided that fee waivers continue to attract institutional capital.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!
© 2025 Bitget