XRP, Solana ETF Holders Are 'Diamond Hands,' Bloomberg Analyst Lauds

Core Insights - XRP and Solana ETF holders exhibit stronger holding behavior compared to Bitcoin and Ethereum ETF holders, with $1.4 billion in inflows despite a 60% decline in assets [1][2] Group 1: ETF Performance - Bitcoin ETFs experienced approximately $9 billion in outflows from October 10, 2025, to February 23, 2026, representing a 12-15% reversal of flows after a more than 50% drop in Bitcoin prices [2] - Ethereum ETFs saw a 25% reversal of flows following a decline of over 60% [2] - In contrast, XRP and Solana ETF holders showed minimal selling activity despite similar or worse price declines, indicating stronger investor commitment [2] Group 2: Investor Base Differences - The divergence in holding behavior is attributed to different investor bases, with Bitcoin and Ethereum ETFs attracting significant basis trade flows that exited when the basis collapsed [3] - XRP and Solana ETFs launched with a basis in single digits, indicating that investors are primarily long-term holders rather than traders seeking yield [4] - Institutional adoption varies, with 50% of Solana ETF holders being 13F filers, suggesting strong institutional backing, while less than 15% of XRP ETF holders are known institutions, indicating heavy retail participation [4][5] Group 3: Market Activity and Institutional Interest - Goldman Sachs is noted as a top holder of Solana and XRP ETFs, but this may reflect trading desk activity rather than long-term investment conviction [6][7] - The presence of firms like Goldman and Millennium as top holders is attributed to their market-making activities, with minimal net exposure due to hedging [7] - There is a growing interest from advisors and institutions to invest in these products, with potential for significant demand if ETFs are included in model portfolios [8] - A 1% allocation from the $30 trillion financial advisor market in the U.S. would have a substantial impact on the space [8]