Crypto traders are not retreating amid volatility, instead diversifying holdings as US XRP ETF saw $1.23 billion while US Solana ETF saw around $889.49 million in cumulative total net inflows as of Friday.
- Investors continued trading during the downturn and spread their holdings across a wider range of cryptocurrencies beyond Bitcoin and Ethereum.
- Users showed growing comfort with market volatility, treating price declines as opportunities to adjust positions rather than as reasons to exit the market.
- Institutional players also moved toward yield-focused products, including proposed staking-based exchange-traded funds.
Robinhood’s (HOOD) head of crypto, Johann Kerbat, told CoinTelegraph that investors are expanding beyond basic crypto tokens and pointed towards the growing demand for staking and decentralized finance tools.
In an exclusive interview with CoinTelegraph on Sunday, Kerbrat said Robinhood customers are treating the recent market downturn as “an opportunity to buy the dip.”
He said that trading activity has remained steady, with users diversifying beyond the largest tokens, such as Bitcoin (BTC) and Ethereum (ETH). “We actually see a lot of customers continuing to trade crypto and diversifying, not just on the top two or three assets, but actually going pretty wide,” he added.
Kerbrat pointed out that Robinhood’s staking feature has gained “very strong traction” since it was introduced in December. He said more customers are using staking to earn rewards on their tokens and are exploring decentralized finance tools instead of simply holding the assets. The Robinhood exec added that this trend is “pretty fun to see.”
BlackRock Moves Toward Staked Ethereum ETF
This trend of focusing on earning yield has not been limited to retail investors. According to an S-1/A filing from early February, BlackRock is preparing to launch its proposed iShares Staked Ethereum Trust (ETHB), which would allow the fund to stake Ethereum directly and earn rewards from the network. The filing stated that the trust may stake a large share of its Ethereum while keeping some assets available in case investors choose to sell their shares.
Crypto Investment Products Expand Beyond Bitcoin And Ethereum
Amid this broader shift toward active crypto participation, crypto investment products have also grown sharply over the past five years. According to CoinShares’ Digital Asset Fund Flows report from late December, digital asset investment products recorded year-to-date inflows of around $46.3 billion.
The report also showed that while Bitcoin and Ethereum products saw recent outflows, newer ETFs tied to digital assets such as Ripple’s XRP (XRP) and Solana (SOL) saw inflows following their US launches. According to Sosovalue, the US XRP ETF saw $1.23 billion while the US Solana ETF saw around $889.49 million in cumulative total net inflows as of Friday.
Read also: Economist Timothy Peterson Sees Bitcoin Rallying Towards $122,000 By Year-End
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