Will ETF inflows be able to ease the volatility of XRP and Solana in 2025, which is twice that of Bitcoin?

Source: PortaldoBitcoin Original Title: In 2025, XRP and Solana had twice the volatility of Bitcoin Original Link: In 2025, the trading of XRP and Solana – the fifth and seventh largest cryptocurrencies by market capitalization – was, on average, twice as volatile as Bitcoin, according to a CoinDesk study. The analysis conducted over the past 365 days showed 87% for Solana and 80% for XRP, compared to 43% for Bitcoin.

However, these altcoin performances are not surprising: over the years, they have exhibited greater volatility than the leading cryptocurrency. And there is at least one explanation for this, which is the altcoin exchange-traded funds (ETFs).

Recent data highlight that ETFs and other alternative investment vehicles linked to altcoins need to attract greater liquidity to match Bitcoin’s stability.

Except for BNB, the analysis highlights, the four largest cryptocurrencies by market value – excluding stablecoins – have futures contracts on the Chicago Board of Trade and spot ETFs listed in the US as indicators of institutional activity.

According to the data source SoSoValue, XRP ETFs attracted over US$ 1 billion in investments since their debut in November. The SOL ETFs, also recent, accumulated US$ 763.91 million.

If demand remains strong next year, it could mitigate price volatility, as observed with Bitcoin.

The spot Bitcoin ETFs launched last year have attracted US$ 56.96 billion in net inflows so far. This increase has boosted interest in advanced products, such as covered options within these ETFs, leading to a steady decline in BTC volatility this year.

The same can be said for the spot Ethereum ETFs, which began trading in July of the following year and have recorded net inflows of US$ 12.4 billion since their debut in mid-2024.

Bitcoin ETFs recorded net inflows of US$ 355 million, meaning they resumed positive flows after a sequence of seven negative days. The highlight is BlackRock’s IBIT, with net inflows of US$ 143.8 million.

Ethereum spot ETFs also ended a four-day negative flow streak on Tuesday, recording total daily net inflows of US$ 67.84 million. Recently launched spot ETFs for XRP, Solana, and Dogecoin recorded positive flows on the day.

According to Nick Ruck, director of LVRG Research, this year, cryptocurrency ETFs demonstrated remarkable maturity, with tens of billions in accumulated flows, despite the negative returns of the assets, driven by significant developments for Ethereum, Solana, XRP, and others.

Looking ahead to 2026, Ruck said that accelerated institutional adoption, regulatory clarity, and flows could surpass previous records and expand access to these crypto investment products to a broader range of investors.