US ETF market hits triple crown as crypto flows diverge

Strong equity performance fuelled demand for both passive and thematic ETF products.However, market participants are increasingly questioning what comes next.

The previous triple crown in 2021 was followed by a sharp reversal in 2022.

In that year, the S&P 500 fell 19% as interest rates rose aggressively.

ETF inflows and new launches slowed as risk appetite faded.

Some investors see parallels between the current environment and that earlier cycle.

Technology and artificial intelligence spending have dominated market narratives in 2025.

Since October, the S&P 500 has largely traded sideways.

Wall Street has begun questioning the return on large-scale AI investment.

Bloomberg Intelligence senior ETF analyst Eric Balchunas warned that expectations may be too optimistic.

Because of how perfect this year seemed to be for ETFs, you kind of want to brace for it.

Eric Balchunas said.

He said a “reality check” could emerge in 2026 through volatility or leveraged ETF failures.

Within the broader ETF boom, crypto funds showed sharply different trends.

Spot Bitcoin ETFs led flows earlier in the year but weakened into December.

BlackRock’s iShares Bitcoin Trust attracted $25.4 billion in inflows despite posting a negative return.

After Bitcoin fell about 30% from its October peak, the fund recorded weeks of outflows.

Ethereum ETFs also faced sustained redemptions late in the year.

By contrast, newer altcoin ETFs showed steady demand.

Spot XRP ETFs logged consecutive days of net inflows after their November launch.

Solana-linked ETFs also attracted capital during December.

Data showed Bitcoin and Ethereum ETFs lost more than $1 billion combined during the month.

XRP and Solana products added hundreds of millions of dollars over the same period.

Some analysts view the shift as a move toward assets with clearer regulatory status.

XRP’s legal case with US regulators concluded earlier in the year.

Others caution the inflows may reflect early enthusiasm rather than long-term conviction.

Both XRP and Solana remain well below recent price highs.

Looking ahead, more crypto ETF launches are expected in 2026.

The evolving flow patterns suggest institutions are becoming more selective.

Investors appear to be reassessing which digital assets best fit long-term portfolios.

At the time of reporting, Bitcoin price was $87,760.77.