Last Friday, the inflow of cryptocurrency ETFs was divergent, with mainstream assets under pressure while altcoins attracted capital against the trend

The cryptocurrency ETF market has shown significant differentiation: Bitcoin and Ethereum-related products have experienced substantial net outflows, while various altcoin ETFs, especially XRP ETFs, continue to attract institutional funds, indicating a notable adjustment in the funding structure.

Mainstream asset outflows are evident:
• Bitcoin spot ETF saw a net outflow of approximately $195 million in a single day, marking one of the weakest performances in weeks.
• Ethereum ETF also recorded significant net outflows, ending a brief period of net inflows earlier this week. Analysts point out that macroeconomic uncertainty (especially with inflation data pending) is prompting institutions to temporarily reduce risk rather than fully retreat. The decline in mainstream ETF trading volume also reflects a temporary wait-and-see approach from investors.

In stark contrast to the pressure on BTC and ETH, the XRP ETF has maintained net inflows for several weeks, accumulating nearly $900 million, demonstrating growing institutional confidence in its relative value and potential regulatory benefits. Other altcoin ETFs, such as Solana, also recorded slight net inflows, indicating that market funds have not exited but are rotating internally.

As the year-end approaches and macro uncertainty rises, institutional investors no longer view the crypto market as a single risk asset but are becoming more "selective":
• Reducing positions in BTC and ETH, which are more susceptible to macro pressures;
• Increasing allocations to altcoins with stronger momentum or clearer narratives.

Friday's ETF fund flow data highlights a new trend among institutions in a turbulent environment: exiting mainstream assets without leaving the market; increasing holdings in alternative assets with stronger volatility resistance.