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Institutional investors are shifting capital from Ethereum ETFs to XRP and Solana, driven by regulatory catalysts and staking yields amid market volatility.
Institutional investors are currently favoring XRP and Solana exchange-traded funds (ETFs) over Ethereum, as the latter faces four consecutive days of net outflows [1]. While Ethereum ETFs saw $189.46 million in redemptions between May 11 and May 14, other crypto-linked assets maintained steady inflows by capitalizing on specific regulatory and technical catalysts [1, 2].
Key takeaways
The divergence in ETF performance is largely attributed to the presence of specific project catalysts rather than broader macroeconomic conditions [1]. XRP ETFs have benefited significantly from the CLARITY Act, which seeks to codify the asset as a digital commodity [1]. Following the bill's passage through the Senate Banking Committee on May 14, XRP ETFs recorded $18.52 million in daily inflows [1, 2]. Analysts suggest that if the bill clears the full Senate before August, cumulative inflows for XRP could reach between $4 billion and $8 billion by year-end [1].
Solana has maintained a streak of 11 inflow days, driven by the testnet launch of the Alpenglow upgrade, which aims to reduce block finality to 150 milliseconds [1]. This technical milestone, combined with the structural advantage of staking yields offered by the Bitwise Solana Staking ETF, has attracted institutional participants [1]. Notably, the Dartmouth College endowment shifted its portfolio strategy by disclosing a $3.3 million position in the Bitwise fund, marking a move toward multi-crypto exposure [1].
Ethereum remains an outlier in the current market, as it lacks a comparable event to anchor investor sentiment [1]. The recent outflows from major funds like BlackRock’s ETHA and Fidelity’s FETH suggest that institutional clients are repositioning their assets in response to a lack of positive news [1]. While Bitcoin ETFs experienced a $635 million outflow on May 13, they recovered with $131 million in inflows the following day, demonstrating a sensitivity to the same legislative developments affecting XRP [1, 2].
The current pattern in ETF flows indicates that institutional capital is prioritizing assets with clear regulatory paths or technical upgrades [1]. For Ethereum, the primary catalyst to watch is the pending SEC decision regarding the inclusion of staking within spot Ethereum ETFs [1]. Market observers note that a favorable ruling could potentially reverse the current outflow trend, as it would provide the yield-generating capability that has already proven successful for Solana-based investment products [1]. Until such a development occurs, institutional money is expected to continue favoring assets with active, positive triggers on the calendar [1].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 13, 2026 · How we report
It is a rewards-generating crypto exchange-traded product launched by BlackRock in March 2026 that holds spot Ether and stakes a portion of those holdings.
The fund stakes between 70% and 95% of its Ether holdings, and the resulting rewards are distributed to investors as monthly cash payouts.
Galaxy Digital is one of three validators selected by BlackRock to power the staking for the iShares Staked Ethereum Trust ETF.