Goldman Sachs 'Dumps' XRP and Solana... Is a Quick Exit the Only Way to Survive?

▲ Solana (SOL), XRP, Cryptocurrency Decline/AI Generated Image

A shift in the position of a major institution has emerged as a new burden for Solana (SOL) and XRP investors. Crypto analyst Merlijn The Trader commented that Goldman Sachs' sale of its Solana and XRP ETF holdings is bad news for investors in both assets.

Bitcoinist reported on May 21 (local time) that Merlijn The Trader interpreted Goldman Sachs' sale of Solana and XRP ETFs via X (formerly Twitter) as an unfavorable signal for investors. He stated that Goldman Sachs maintained its Bitcoin (BTC) and Ethereum (ETH) exposure, suggesting that "a major US bank has separated the winners from the losers." He further argued that this move was not merely a market signal but an expression of conviction.

However, Goldman Sachs did not only liquidate its Solana and XRP ETF holdings but also reduced its Bitcoin and Ethereum exposure. Goldman Sachs cut its BlackRock Ethereum ETF holdings by almost 70%, reducing its stake in that ETF to just over $100 million. Its Bitcoin exposure through Bitcoin ETFs also dropped to less than $700 million.

Goldman Sachs was one of the major XRP ETF holders among institutional investors, holding positions worth $153 million across four funds. Its Solana ETF position also exceeded $100 million. These sales occurred amidst a bearish cryptocurrency market in the first quarter of this year, with Solana and XRP experiencing significant declines.

Year-to-date, XRP has fallen by over 26%, and Solana by more than 30%. During the same period, Bitcoin and Ethereum also dropped by 10% and 28%, respectively. In contrast, Goldman Sachs established new positions in Hyperliquid Strategies, gaining exposure to Puff DEX tokens. These tokens are reported to have risen by over 120% year-to-date, making them the best-performing asset among the top 10 cryptocurrencies.

A counter-argument also emerged, suggesting that demand for XRP is not concentrated in a single institution. Crypto commentator X Finance Bull pointed out that even though Goldman Sachs was the largest institutional holder, XRP ETF flows remained positive. He stated that even after Goldman Sachs exited, several institutional buyers continued to accumulate XRP, indicating that demand is not concentrated in one institution.

X Finance Bull also mentioned that XRP ETFs showed better flows than Bitcoin and Ethereum ETFs. According to SoSoValue data, Bitcoin ETFs have recorded a monthly net outflow of $800 million so far this month. Ethereum ETFs also showed negative flows with a net outflow of $260 million this month.

In contrast, XRP ETFs attracted nearly $100 million this month, and Solana ETFs showed even stronger flows with a net inflow of $103 million. X Finance Bull explained that the positive flow of XRP ETFs is a sign that a broader institutional capital base, not a single bank, is forming a floor.

Goldman Sachs' sale highlighted a case of a major institutional exit that could burden Solana and XRP investor sentiment. However, looking solely at ETF fund flows, it is difficult to conclude that institutional demand for both assets has completely disappeared. Despite negative factors such as price declines and a major bank liquidating positions, Solana and XRP maintained positive ETF net inflows, making the dispersion of institutional demand a key point to watch in the future.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*