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As institutional appetite for bitcoin and ether ETFs cools, money is rotating into altcoin-focused funds. According to CoinDesk data, XRP-linked ETFs posted $59.4 million in net inflows in June, their third consecutive positive month, while HYPE ETFs attracted $161 million over the same period. However, SoSoValue data showed the pace of XRP inflows slowed compared to the previous two months.
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Sign InThe shift comes as investors continue to pull funds from bitcoin and ether ETFs, which have seen notable outflows in recent months. The combined $220 million+ flowing into XRP and HYPE funds in June highlights institutions' push for diversification beyond the two largest cryptocurrencies, seeking higher returns amid slowing momentum in mainstream crypto markets.
Traders are watching whether this flow rotation continues into July, especially with no major near-term catalysts for bitcoin or ether. Markets also await any regulatory signals that could affect risk appetite, as uncertainty persists around the outlook for digital asset ETFs in the United States.