BTC/ETH ETF "Bleeding" VS XRP "Crazy Absorption" of nearly 900 million: Market Rotation or Change in Trend? | MyToken AMA Review

Recently, the cryptocurrency ETF market has shown significant differentiation: Bitcoin and Ethereum-related products have seen substantial net outflows, while various altcoin ETFs, especially XRP ETFs, continue to attract institutional funds, indicating a notable adjustment in the funding structure. Mainstream asset outflows are evident:
On December 5, the Bitcoin spot ETF experienced a net outflow of approximately $195 million in a single day, marking one of the weakest performances in weeks. The Ethereum ETF also recorded significant net outflows at that time, contrasting sharply with the pressure on BTC and ETH, while the XRP ETF maintained net inflows for several weeks, accumulating nearly $900 million, reflecting growing institutional confidence in its relative value and potential regulatory benefits.
Is this phenomenon a short-term risk-averse behavior or a fundamental shift in institutional allocation logic? How should ordinary investors respond?
MyToken recently held a special AMA, inviting several industry experts for an in-depth interpretation of this situation. Below is a recap of the core viewpoints from the discussion.

Guest Introductions

• 牛魔王 (@Btcniumowang): A senior analyst and KOL in the crypto field, focusing on primary and secondary market research, with unique insights into market structure and fund flows.
• Christina (@ChristineKTX): CMO of KTX Exchange, which recently launched on-chain trading tools aimed at empowering retail investors with data.
• Evan (@ChainThink_zh): A researcher at ChainThink blockchain media, focusing on market data analysis and industry trend interpretation, skilled in analyzing fund movements from macro and on-chain perspectives.

Summary of Opinions

1. Divergence in Fund Flows: Short-term Rotation or Long-term Shift?

The three guests unanimously believe that the recent fund flows from mainstream coin ETFs to altcoin ETFs like XRP are more a result of short-term market rotation and macro risk aversion rather than a fundamental shift in institutional allocation logic towards crypto assets.

• 牛魔王 pointed out that at the end of the year, institutions tend to lock in profits and balance positions, making Bitcoin and Ethereum, as highly liquid assets with strong macro correlations, natural targets for reallocation. Meanwhile, the market is searching for the next potential ETF hotspot, with assets like XRP attracting funds due to regulatory progress and independent narratives.
• Christina, representing an exchange that emphasizes user experience and transparency, added that institutions will choose assets with stronger narratives and regulatory backing under macro uncertainty. The dynamics of XRP in the payment and DeFi sectors have made it a focal point for recent fund attention.
• Evan analyzed from a market cycle perspective, noting that Bitcoin's recent gains have been relatively sufficient, with its volatility decreasing year by year. Some profit-taking funds are shifting towards undervalued altcoins with fundamental support in search of higher alpha returns. However, this remains a "tactical rotation," and the benchmark status of Bitcoin and Ethereum has not changed.

2. Will This Become the Norm? What Impact Will It Have on Market Structure?

The guests generally believe that the fund rotation model of "exiting mainstream but not exiting the market" may become more normalized in the future, further driving the stratification of the market valuation system.

• 牛魔王 likened Bitcoin to the "S&P 500," more influenced by macro factors, while XRP and Solana are like "growth stocks," relying more on project fundamentals and narratives. The market will become more structured, with sector rotations becoming more precise and shorter in duration.
• Christina stated that as the market matures and institutions delve deeper, funds will continuously seek the next growth point. She is optimistic about areas with real business models, such as payments, on-chain credit scoring, and RWA (real-world assets).
• Evan pointed out that the total market capitalization of cryptocurrencies has become large, making it difficult for funds to support a broad bullish trend. In the future, institutional allocations will focus more on a combination of "mainstream coins + quality altcoins" to balance risk and return.

3. How Should Retail Investors Respond?

In the face of institution-led fund rotations, how should retail investors rationally view and utilize this institutional fund movement? Should they quickly switch positions to follow the flow, or should they stick to core allocations and ignore short-term noise? What aspects should they pay attention to? The guests also shared their views on this.

• 牛魔王 advised that retail investors should remain rational and avoid blindly following trends. They should maintain 70%-80% of their core positions in mainstream assets like Bitcoin and Ethereum, while allocating a small portion to promising narrative sectors. Emotional chasing of highs and lows should be avoided.
• Christina emphasized that retail investors are at a disadvantage in terms of information and data, and they can use tools (such as the on-chain signal product that KTX will soon launch) to track fund flows. Their allocation should be based on mainstream assets, with a small portion of funds directed towards potential sectors after thorough research.
• Evan illustrated with a vivid example of friends following Duan Yongping, highlighting the significant differences in fund size and risk tolerance between retail investors and institutions. He noted that institutional ETFs might merely be replacement behaviors (converting spot holdings into compliant ETF products), making position management crucial. High-frequency switching should be avoided, and investors should be wary of high-yield traps, focusing on the long-term value and fundamentals of projects.

4. Which Sectors Continue to Attract Institutional Attention?

The sectors favored by the guests are concentrated in areas with real demand, clear business models, and compliance prospects:

• 牛魔王: Optimistic about Solana (active ecosystem, payment potential), RWA (asset tokenization, stable returns), and AI (combining computing power needs with payment scenarios).
• Evan: Important directions include payment scenarios (such as U-card applications) and RWA (improving the efficiency of illiquid assets).
• Christina: In addition to payment chains, she also focuses on on-chain credit scoring and mature DeFi protocols.

5. Why Is There Significant Inflow into XRP ETFs but a Tepid Price Reaction?

Additionally, during the community interaction segment, audience members raised the question of why XRP ETF data continues to flow in, yet the XRP price is not significantly affected. Evan and 牛魔王 pointed out that this is mainly due to:

• The market's sensitivity to ETF narratives has decreased, with multiple ETFs leading to diminishing effects;
• Some inflows may be institutional position replacements (converting spot holdings into compliant ETF products);
• There is selling pressure from unlocks and historical trapped positions, which suppresses rapid price increases.

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Conclusion
This AMA revealed the complexity of current fund flows in the cryptocurrency market: institutional operations are becoming increasingly refined, with a game between institutions and retail investors, and the market is shifting from a "broad bullish market" to a "structural bullish market." For investors, understanding the rotation logic, maintaining core allocations, and rationally participating in trends may be key to navigating the future market.
MyToken, as a neutral and comprehensive data platform, continues to provide in-depth data on ETF fund flows, on-chain signals, and more to support investment decisions, market insights, and tool support. This article is based on the content of the MyToken AMA, and the views of the guests are for reference only and do not constitute investment advice.