Grayscale Crypto Index Fund Sees $22 Million Inflows as SOL and XRP Rise

TLDR

• Grayscale’s Crypto 5 ETF saw $22 million in inflows on its first trading day.
• SOL futures hit $2.1 billion in open interest, a rapid growth milestone.
• XRP futures reached $1 billion in open interest, marking strong institutional interest.
• Coinbase reported $1.9 billion in SOL and XRP futures trading volume last month.

Grayscale’s new Crypto Index Fund has made an impressive debut, with $22 million in inflows on its first day as an ETF. This positive start comes as institutional demand for Solana (SOL) and XRP continues to grow, driven by the anticipation of upcoming spot ETFs. The fund, which holds a mix of Bitcoin (BTC), Ethereum (ETH), Solana, XRP, and Cardano (ADA), was approved by the SEC and launched on September 17. Analysts are watching closely as crypto ETFs gain traction in the market.

Strong ETF Launches Reflect Institutional Interest

Grayscale’s CoinDesk Crypto 5 ETF has garnered significant attention since its launch. Bloomberg analyst Eric Balchunas called the $22 million in inflows on day one “solid,” emphasizing that it surpassed the average performance of typical ETF launches. 

He also pointed out the success of REX-Osprey’s Dogecoin and XRP ETFs, which secured $12 million and $15 million in their first trading days, respectively. These numbers show that the crypto ETF market is growing rapidly, even though they still lag behind Bitcoin-focused ETFs.

The Crypto 5 ETF offers a diversified approach by holding five major cryptocurrencies, including BTC, ETH, SOL, XRP, and ADA. This diversified strategy caters to a broader range of investors, reflecting the shift in crypto investments beyond Bitcoin and Ethereum. Analysts have noted that while crypto ETFs are still in their early stages, the current momentum offers promising signs for the future of crypto-based funds.

Rising Institutional Demand for Solana and XRP

The demand for Solana and XRP continues to rise, particularly from institutional investors. Both altcoins are seeing increased interest due to the expected launch of spot crypto ETFs tied to these assets.

Solana, in particular, has been attracting attention from the CME’s trader community. As of recent reports, Solana futures open interest has surpassed $2.1 billion, marking an impressive increase. This makes Solana the fastest crypto asset to see such growth in its futures market, outperforming even Bitcoin, which took months to reach a similar milestone.

XRP has also seen a surge in institutional interest. The CME reported that XRP futures reached a $1 billion open interest last month. This made XRP the fastest crypto contract to reach this figure, which further underscores the growing interest from larger investors. Both Solana and XRP have become key players in the crypto ecosystem, and institutional demand for their futures products has been a major driver of this momentum.

Crypto Futures and Institutional Participation

Alongside increasing demand for SOL and XRP, major crypto exchanges like Coinbase have reported a surge in futures trading. Coinbase revealed that its SOL and XRP perpetual futures products saw an exponential rise in volume. In just one month, these products reached $1.9 billion in notional volume, with 1.6 million contracts traded. This increase in trading activity highlights how institutional investors are looking to manage risks associated with altcoins.

The CME also plans to introduce options on Solana and XRP futures starting October 13, further expanding institutional access to these assets. As the market for crypto futures and options grows, more investors are seeking exposure to altcoins beyond Bitcoin and Ethereum. This trend signals a broader shift in the institutional crypto market as demand for Solana and XRP continues to grow, further solidifying the importance of these assets in the digital currency space.

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