Bitcoin Updates: The Crypto Market Splits—Bitcoin ETFs See Outflows While Altcoin Enthusiasts Seek Returns and New Developments

The cryptocurrency sector is currently experiencing a sharp divide in trends as

exchange-traded funds (ETFs) see unprecedented withdrawals, while alternative coin (altcoin) funds—especially those managed by Bitwise Asset Management—are attracting significant new investments. This split highlights changing investor attitudes amid ongoing market turbulence and regulatory ambiguity.

BlackRock's

(IBIT), the largest spot Bitcoin ETF in the U.S., on November 19, its largest single-day withdrawal since its launch in January 2024. This pushed total Bitcoin ETF outflows for November close to $3 billion, . As a result, the average investor cost basis now stands at $89,600, earlier in the week. The downturn has resulted in more than 64% of Bitcoin’s supply being held at a loss, of both individual and institutional investors.

In contrast, Bitwise’s

ETF (BSOL) and ETF (XRP) have and $420 million in new funds, respectively, since their respective launches. the "increasing demand for Solana ETF exposure," noting that daily inflows have continued for three straight weeks. The company’s XRP ETF, which launched on the NYSE, has also maintained steady interest, on November 14 alone. These altcoin ETFs are gaining momentum as investors look for better returns while Bitcoin struggles.

This divergence in fund flows signals a broader shift among sophisticated investors. Large holders, or "whales," are increasingly betting against Bitcoin, with 53% of their positions now short, while

and Solana are showing different patterns. Ethereum, considered a core asset for decentralized finance (DeFi), . Solana, on the other hand, is facing negative sentiment, shorting it despite the ETF inflows.

Experts attribute the popularity of altcoin ETFs to their distinctive advantages. Bitwise’s Solana ETF combines staking rewards with price exposure, providing investors with a product that enhances yield.

Ripple’s global payment network, which rivals established systems such as SWIFT. for digital assets, forecasts that Bitcoin could reach $500,000 and XRP could hit $12.50 by 2028, fueled by regulatory progress and increased institutional participation.

However, risks remain. Bitcoin’s recent dip below $90,000 has raised concerns about liquidity,

the downward pressure on prices. At the same time, XRP’s derivatives market is still weak, and its ETFs are challenged by limited interest from retail investors. commented that the Bitcoin withdrawals reflect "institutional repositioning rather than surrender," as investors look for optimal entry points ahead of possible macroeconomic shifts.

With the end of the year approaching,

is set to be a key moment. As Bitcoin ETFs struggle and altcoin products thrive, the market is becoming a contest between cautious traditional investors and crypto-native participants seeking growth and higher returns.