Analyst Says Solana And XRP Investors Are In Trouble, What’s Going On?

bitcoinistPublished on 2026-05-21Last updated on 2026-05-21

Abstract

A crypto analyst highlights Goldman Sachs' sale of its Solana and XRP ETF holdings as "bad news" for investors in those assets, interpreting it as the bank separating "winners from losers" by retaining Bitcoin and Ethereum exposure. The bank significantly reduced positions across multiple crypto ETFs in Q1, including cutting its Ethereum ETF holding by nearly 70% and Bitcoin exposure to under $700 million. It sold over $100 million in SOL ETFs and was a major XRP ETF holder with a $153 million position. Despite this, XRP ETF flows remain positive for the month with nearly $100 million in inflows, suggesting demand is distributed across multiple institutions rather than concentrated in one firm. Solana ETFs also saw over $100 million in inflows. Both XRP and Solana are down over 26% and 30% year-to-date, respectively, amid a broader market decline. Goldman Sachs initiated a new position in Hyperliquid Strategies, gaining exposure to a top-performing token. Analysts note that while the bank's move is a significant conviction statement, continued institutional buying in XRP and Solana ETFs indicates broader support.

Crypto analyst Merlijn has delivered “bad news” to Solana and XRP investors, with Goldman Sachs offloading their exposure to these coins. The analyst highlighted this as a conviction statement as the top U.S. bank held on to its Bitcoin and Ethereum exposure.

Analyst Delivers Bad News To Solana And XRP Holders

In an X post, Merlijn called Goldman Sachs move to sell its Solana and XRP ETF holdings as bad news for investors in these coins. He stated that the U.S. bank just separated the winners from the losers, seeing as it held on to its Bitcoin and Ethereum exposure. The analyst added that this is not a market signal but a conviction statement.

However, it is worth noting that Goldman Sachs trimmed its Bitcoin and Ethereum exposure alongside selling its Solana and XRP ETF holdings. The bank cut its holdings in BlackRock’s Ethereum ETF by almost 70% and now holds just over $100 million in the ETF shares. The bank’s Bitcoin exposure through BTC ETFs has dropped to just under $700 million.

Meanwhile, Goldman Sachs was among the largest XRP ETF holders among institutional investors, holding a $153 million position across four funds. At the same time, the bank’s Solana position was over $100 million held across SOL ETFs. The move to sell their holdings in the first quarter of this year came amid the crypto market downtrend, with these coins recording notable declines.

XRP is currently down over 26% year-to-date (YTD) while Solana is down over 30% as the bear market persists. Bitcoin and Ethereum are also down 10% and 28%, respectively. Interestingly, Goldman Sachs initiated a new position in HYPE treasury firm Hyperliquid Strategies, gaining exposure to the Perp DEX token, which is up over 120% YTD and is the best-performing asset among the top 10 crypto assets.

XRP Demand Not Concentrated In One Firm

Crypto pundit X Finance Bull noted that XRP ETF flows remain positive despite Goldman Sachs, the largest institutional holder, selling its position. He declared that this means demand is not concentrated in one firm but distributed across multiple institutional buyers who continued to accumulate as the U.S. bank exited.

The pundit also highlighted how the XRP ETFs have outperformed the Bitcoin and Ethereum ETFs, which he noted continue to see significant outflows. SoSoValue data shows that the BTC ETFs have recorded a monthly outflow of $800 million so far this month. The Ethereum ETFs are also in the red this month, with a $260 million outflow.

Meanwhile, the XRP ETFs have taken in almost $100 million this month, while the Solana ETFs are outperforming with an inflow of $103 million. X Finance Bull stated that the XRP ETFs’ positive flows are a sign that a floor is being built by a broader base of institutional capital rather than by a single bank.

SOL trading at $86 on the 1D chart | Source: SOLUSDT on Tradingview.com

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Related Questions

QAccording to the analyst Merlijn, what specific action by Goldman Sachs is considered 'bad news' for Solana and XRP investors?

AAccording to analyst Merlijn, Goldman Sachs selling its Solana and XRP ETF holdings is considered 'bad news' for investors in these coins.

QDespite Goldman Sachs selling its XRP ETF position, why does the article suggest XRP investor demand is still healthy?

AThe article suggests XRP investor demand is still healthy because XRP ETF flows remain positive, indicating demand is distributed across multiple institutional buyers who accumulated as Goldman Sachs exited, rather than being concentrated in one firm.

QIn addition to Solana and XRP, which two major cryptocurrencies did Goldman Sachs also reduce its exposure to?

AIn addition to Solana and XRP, Goldman Sachs also reduced its exposure to Bitcoin and Ethereum.

QWhat new asset did Goldman Sachs initiate a position in during the first quarter, and how has it performed year-to-date?

AGoldman Sachs initiated a new position in Hyperliquid Strategies, gaining exposure to the Perp DEX token, which is up over 120% year-to-date (YTD) and is the best-performing asset among the top 10 crypto assets.

QBased on the ETF flow data cited in the article, which crypto asset's ETFs have seen net inflows in May 2026, contrasting with the outflows from Bitcoin and Ethereum ETFs?

ABased on the ETF flow data, both XRP ETFs (with almost $100 million inflow) and Solana ETFs (with a $103 million inflow) have seen net inflows in May 2026, contrasting with the outflows from Bitcoin and Ethereum ETFs.

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