XRP overtakes Solana in ETF race with aggressive fee strategy

XRP is main the race for altcoin supremacy within the US crypto exchange-traded fund (ETF) market with document efficiency since final month.

In lower than ten buying and selling days, the brand new crop of US spot XRP ETFs have recorded cumulative inflows of roughly $587 million, in comparison with roughly $568 million for his or her Solana counterparts.

This surge upends the trade’s hierarchy, making XRP the premier platform for non-Bitcoin and Ethereum danger taking in a market in any other case outlined by outflows and defensive positioning.

Solana vs. XRP ETFs

Solana ETFs set the early tempo within the sector.

Since their debut on October 28, the US spot Solana ETFs recorded 20 consecutive days of web inflows, totaling roughly $568 million. This helped deliver the fund’s complete belongings to $840 million, which represents roughly 1% of the token’s market capitalization.

Nevertheless, XRP has compressed that trajectory right into a hyper-accelerated window.

As of November 21, US spot XRP merchandise had already collected $423 million. Nevertheless, the entry of heavyweights Grayscale and Franklin Templeton on November 24 triggered an enormous capital infusion, including roughly $164 million in web creations in a single session.

This brings the cumulative complete of the XRP advanced to roughly $587 million, eclipsing Solana’s month-to-month installment in almost half the time.

On a capital depth foundation, XRP is now absorbing institutional {dollars} at almost double the every day charge of its rival.

The race to zero

The pace of the change is attributable to a structural ‘race to the underside’ by way of prices.

Franklin Templeton has established probably the most aggressive worth benchmark within the crypto ETF sector. The XRPZ fund has a 0.19% sponsorship price, which is absolutely waived on the primary $5 billion of belongings by means of Could 31, 2026.

For institutional allocators and mannequin portfolios, the place foundation level friction dictates choice, XRPZ basically turns into a zero-cost carry commerce over the following six months.

Grayscale’s GXRP has taken an identical stance and is waiving normal charges for the primary three months.

This aggressive subsidization of issuers coincided with a spike in demand. The $164 million enhance on November 24 suggests {that a} vital quantity of capital was put aside, particularly ready for these low-cost, branded packages to go stay earlier than deploying.

Whereas Solana ETFs additionally took benefit of waivers for funds like Bitwise’s BSOL, the sheer measurement of Franklin’s $5 billion cap seems to have unlocked a larger degree of institutional move instantly after itemizing.

Momentum versus gravity

Nevertheless, probably the most placing distinction lies within the relationship between flows and worth motion.

Solana’s $510 million influx comes amid a 30% worth correction from current highs. On this context, ETF flows have acted as a dampener, absorbing sell-side stress from present holders however failing to reverse the pattern.

This basically makes the SOL ETF’s efficiency a defensive accumulation story.

XRP flows, then again, are inflicting a breakout. The token had additionally skilled a decline of round 17% over the previous 30 days, however rose round 10% after the November 24 session.

This helped XRP break above $2, with the token buying and selling as excessive as $2.27. On-chain evaluation from Glassnode identifies this area as a “key psychological zone,” the place legacy holders usually promote to interrupt even on losses beginning in early 2025.

In earlier cycles, this provide wall capped rallies. Immediately, the ETF bid adjustments the calculus. With funds absorbing $50 million to $100 million every day, the ETFs create a non-price-sensitive demand properly that may soak up present provide.

Not like Solana, the place flows battle gravity, XRP flows act like a battering ram, turning a historic resistance degree into an accumulation flooring.

The highway to $2 billion?

With 4 issuers energetic and the $500 million milestone reached in lower than 15 buying and selling days, market watchers are recalibrating their year-end projections.

The present run charge places XRP on a trajectory that exceeds many analyst expectations for non-Bitcoin belongings.

If the present pattern continues, which is characterised by every day inflows that normalize after the launch hype between $40 million and $60 million, the advanced is on monitor to cross the $1.5 billion mark by the tip of the yr.

Nevertheless, a “bull case” situation emerges.

If Franklin Templeton’s price waivers efficiently court docket registered funding advisors (RIAs) and the rotation of underperforming belongings continues, the advanced may theoretically strategy $2 billion in belongings beneath administration (AUM) earlier than closing its books in 2025.