What to Know
- SOL, XRP, LTC, and HBAR ETFs have attracted only $700M, with several days of zero new inflows.
- All four tokens have fallen 7-31% since listing, showing fading market excitement around ETF news.
- Weak liquidity, high volatility, and no staking support inside ETFs continue to limit large capital inflows.
Wall Street has officially approved Solana (SOL), XRP, Litecoin (LTC), and Hedera (HBAR). However, their launch has been met with low demand and declining prices rather than fresh excitement or strong buying interest. What was anticipated to be a significant advancement for altcoins has instead brought attention to more serious issues with the market.
ETF Hype Fades Quickly
Together, new ETFs have attracted only around $700 million in net inflows so far. That may sound like a big number, but it is extremely small compared to the billions that flowed into the first Bitcoin and Ethereum spot ETFs.
There have even been days when there have been no new subscriptions for these ETF products, indicating a sharp decline in investor interest. Although there was a sense of momentum due to the regulators’ quick approvals, the actual amount of money coming in shows otherwise.
Each altcoin ETF has had a different journey, but all share the same problem slow inflows after the initial hype. Solana ETFs brought in $420 million, but 80% of that came on the first day from Bitwise. Since then, inflows have slowed down sharply. XRP ETFs reached $270 million, mostly from their strong first week. But the momentum faded soon after. Litecoin ETFs had one of the worst performances, earning just $7.26 million. The majority of the products recorded less than $1 million per day, with HBAR ETFs seeing roughly $74.7 million. These figures fall well short of industry expectations, even though they are not zero.
Altcoin Prices Slide Since ETF Launch
Instead of boosting confidence, the new ETFs have been followed by price drops across all four tokens. Most of these coins have fallen anywhere between 7% and 31%, showing that the market is no longer reacting positively to ETF news. Investors are simply not rushing into altcoins the way they did with Bitcoin and Ethereum. One reason is that ETFs are closely tied to spot prices. When the underlying token weakens, the ETF becomes less attractive, causing another wave of selling pressure.
Altcoins make up less than 20% of the total crypto market. They often don’t have liquidity on hand, which makes it hard to make big trades. A lot of them still don’t have strong real-world use cases, which makes institutions cautious.
Institutions are not willing to take on extra risk during a bearish period, especially when Bitcoin and Ethereum already offer safer exposure. There is some optimism around future ETF products that include staking rewards. Regulators in the U.S. recently sent signals that they may allow staking inside ETFs in the future. If that happens, coins like SOL, AVAX, and ATOM could finally see real institutional interest. For now, the inflows are mostly speculation-driven and not long-term positions.
Price Action
SOL rose 1.75% in 24 hours, even though it remains down 11% on the week and 27% on the month.
A strong $26.2M ETF inflow streak, plus a rebound from the $130 support, helped its short-term bounce. Traders are also reopening long positions in futures, but SOL still faces resistance at $145–$160. XRP fell 1.6% in the past day to $2.15, dragged down by retail panic selling, global market pressure, and a technical breakdown below $2.20 support. If XRP fails to hold $2.08, it could fall toward $1.80.
HBAR gained 1.42%, bouncing off oversold levels near $0.144. Still, its volume is weak, and the coin remains in a broader downtrend. A move above $0.1512 is needed for any real recovery. LTC dropped 1.66% to $94.24, breaking below major technical supports. With its ETF only bringing in $2 million and Bitcoin ETF outflows hurting sentiment, LTC could drop below $90 if support fails.
Conclusion
The arrival of altcoin ETFs marks an important step toward making crypto more accessible. But for now, they are far from becoming major “gateways of capital.” Weak liquidity, falling prices, and cautious institutions continue to hold back demand.
Also Read: SharpLink Sends 5,442 ETH to Galaxy OTC Amid Ethereum Price Correction
