12 hours ago
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XRP and Solana ETF holders are “even better diamond hands than the Bitcoin and Ethereum ETF holders,” Bloomberg senior ETF analyst James Seyffart said Wednesday, as both products held $1.4 billion in inflows despite assets falling over 60%.
Seyffart said on the Milk Road podcast there hasn’t been a ton of outflows despite massive pullbacks, demonstrating stronger holder conviction than Bitcoin and Ethereum ETFs.
Bitcoin ETFs saw roughly $9 billion in outflows from October 10, 2025 through February 23, representing about 12-15% of flows reversing after Bitcoin fell more than 50%.
Meanwhile, Ethereum ETFs experienced worse performance with 25% of flows reversing after the asset dropped over 60%.
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In contrast, XRP and Solana ETF holders barely sold despite similar or worse price declines. “They are even better diamond hands than the Bitcoin and ETH ETF holders,” Seyffart said.
Seyffart explained the divergence stems from different investor bases.
Bitcoin and Ethereum ETFs attracted significant basis trade flows, where investors buy the spot ETF and short futures to capture the price differential. When the basis collapsed, that short-term capital exited.
XRP and Solana ETFs launched when the basis was single digits, meaning “there’s no way there’s people piling into these things for a basis trade.” The flows into these ETFs represent long-term investors wanting an allocation to hold, not traders seeking yield.
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Institutional adoption differs between the products. Seyffart said 50% of Solana ETF holders are 13F filers as of December 2025, indicating strong institutional backing.
For XRP ETFs, less than 15% of holders are known institutions, suggesting heavy retail participation.
Goldman Sachs appearing among top holders of Solana and XRP ETFs caught attention, but Seyffart cautioned against reading too much into it.
“I wouldn’t ascribe too much to seeing a name like that at the top of the holders list,” he said.
The positions likely represent trading desk activity or market making rather than long-term conviction.
