New exchange-traded funds (ETFs) for Solana (SOL) and Ripple’s XRP experienced a surge in trading volume upon launch in November 2025. However, the market saw an unexpected price decline for both cryptocurrencies despite this boost from institutional investors. Canary Capital and Grayscale launched these ETFs, providing regulated exposure to the crypto space. While institutional interest in ETFs increased trading volumes significantly, both SOL and XRP prices dropped sharply. Arthur Hayes, CEO of BitMEX, highlighted: ‘ETFs are great for liquidity but don’t guarantee price appreciation.’ This suggests a shift from traditional spot markets toward regulated products. The influx of capital into ETFs is impacting on-chain activities. Some experts believe this redirection of funds impacts both spot prices and market sentiment. The launch of these ETFs offers increased legitimacy in the crypto space, yet it simultaneously contributes to liquidity issues as investors move away from traditional exchanges. This shift is likely to amplify market volatility as capital continues to move within the rapidly evolving crypto landscape.