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Crypto in Spotlight: Navigating Bitcoin Slump With Alternative ETFs
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Key Takeaways
BTC plunged nearly 20% in a week, erasing over $1T in crypto market value amid a sharp sentiment shift.
Hawkish Fed fears and the unwinding of the Trump-driven crypto rally accelerated Bitcoin's steep correction.
SOL and XRP ETFs drew fresh inflows, signaling investor rotation toward alternative digital assets.
The cryptocurrency market has been hit by a seismic jolt recently, with Bitcoin (BTC) plummeting to 16-month lows. In a staggering display of volatility, the "digital gold" fell nearly 20% in a single week this February, at one point flash-crashing toward the $60,000 mark.
This heavy drawdown, with the price of Bitcoin falling to its lowest level in 15 months (as mentioned by the BBC), wiped out more than $1 trillion in total crypto market value in just a month and $2 trillion since the market peaked in October, as per CoinGecko data.
As Bitcoin’s dominance wavers, the spotlight is shifting toward a new breed of Crypto Exchange-Traded Funds (ETFs) that allow investors to navigate the slump by diversifying into alternative digital assets and avoiding direct exposure to Bitcoin.
What Triggered Bitcoin’s Dramatic Fall?
The catalyst for this "crypto winter" is a combination of political, monetary, and market-sentiment factors, as mentioned below, that converged into a perfect storm.
Shifting Monetary Policy Expectations: A primary catalyst, also cited by analysts at Deutsche Bank, was the nomination of Kevin Warsh as the new Federal Reserve chair. Markets perceive Warsh as likely to maintain a "hawkish" stance with higher interest rates, which typically reduces investor appetite for speculative assets like cryptocurrencies. Loose monetary policy had previously supported crypto's rise.
Erosion of Speculative "Trump Premium": Bitcoin enjoyed a massive rally in 2024-2025, fueled by President Donald Trump's pro-crypto agenda, which included executive orders and relaxed regulations. However, this "Trump trade" has unwound sharply. Growing political scrutiny, including a Senate investigation into Trump's personal crypto dealings, introduced new uncertainty and regulatory risk.
Broader Market Pessimism and Profit-Taking: After a parabolic rise, the market was ripe for a correction. As negative sentiment for digital currency rose, traditional investors lost interest. As a result, massive liquidations caused Bitcoin to slump nearly 50% from its recent high of $126,000 in October (as per CNBC).
Will Bitcoin Revive Soon?
The future path for Bitcoin appears to be uncertain to some extent, with analysts divided in their opinion about its outlook.
While some firms, such as Stifel, warn that prices could fall to $38,000, representing an approximate 70% slump, others in the industry, including Abra Capital Management’s CEO, expect a rebound, barring extreme geopolitical events.
Turning the Focus on Alternative Crypto ETFs
Amid the Bitcoin carnage, investors looking to navigate this volatility may be interested in turning their focus to alternative digital assets like Solana (SOL) and XRP, and the ETFs holding them.
Known for its high-speed infrastructure, Solana has become a favorite for those seeking high-performance blockchain tech. The anticipated approval of more Spot Solana ETFs in late 2026 provides a potential floor for its valuation.
On the other hand, with its clear regulatory status following the 2025 SEC settlement, XRP has seen impressive institutional demand.
Unlike the sell-off in Bitcoin, Solana and XRP spot ETFs attracted fresh capital in recent times (as mentioned by Trading View), signaling that big money is moving toward assets designed for cross-border payment efficiency.
Moreover, considering JP Morgan’s statement (as cited in Yahoo Finance) that Bitcoin could reach $266,000 "over the long term," those who want to gain from the long-term growth of blockchain technology may consider investing in diversified basket featuring significant weights in Etherium, SOL, and XRP, along with BTC, making it a "market-wide" bet rather than a single-coin gamble.
Top Crypto ETFs to Watch
If you are looking to diversify away from the Bitcoin slump, consider adding the following ETFs to your watchlist:
This fund, with a market price of $17.18 as of Feb 4, 2026, offers exposure to XRP, one of the world’s largest and longest-running crypto assets. It holds assets under management (AUM) worth $208 million.
It charges 34 basis points (bps) as fees. The fund traded at a volume of 2.48 million shares in the last trading session.
This fund, with a market price of $8.01 as of Feb. 5, 2026, offers exposure to one of the fastest-growing blockchain ecosystems, Solana. It holds net assets worth $80.6 million.
It charges 95 bps as fees. The fund traded at a volume of 5.55 million shares in the last trading session.
This fund, with a market price of $12.38 as of Feb. 4, 2026, offers exposure to Solana and also seeks to derive additional Solana through staking. It holds net assets worth $447 million.
It charges 20 bps as fees. The fund traded at a volume of 5.35 million shares in the last trading session.
This fund, with a market price of $29.02 as of Feb. 5, 2026, offers exposure to crypto “large caps” beyond just Bitcoin and Ether, covering 90% of the crypto market’s capitalization. It has AUM worth $353 million.
It charges 59 bps as fees. The fund traded at a volume of 0.41 million shares in the last trading session.
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Crypto in Spotlight: Navigating Bitcoin Slump With Alternative ETFs
Key Takeaways
The cryptocurrency market has been hit by a seismic jolt recently, with Bitcoin (BTC) plummeting to 16-month lows. In a staggering display of volatility, the "digital gold" fell nearly 20% in a single week this February, at one point flash-crashing toward the $60,000 mark.
This heavy drawdown, with the price of Bitcoin falling to its lowest level in 15 months (as mentioned by the BBC), wiped out more than $1 trillion in total crypto market value in just a month and $2 trillion since the market peaked in October, as per CoinGecko data.
As Bitcoin’s dominance wavers, the spotlight is shifting toward a new breed of Crypto Exchange-Traded Funds (ETFs) that allow investors to navigate the slump by diversifying into alternative digital assets and avoiding direct exposure to Bitcoin.
What Triggered Bitcoin’s Dramatic Fall?
The catalyst for this "crypto winter" is a combination of political, monetary, and market-sentiment factors, as mentioned below, that converged into a perfect storm.
Shifting Monetary Policy Expectations: A primary catalyst, also cited by analysts at Deutsche Bank, was the nomination of Kevin Warsh as the new Federal Reserve chair. Markets perceive Warsh as likely to maintain a "hawkish" stance with higher interest rates, which typically reduces investor appetite for speculative assets like cryptocurrencies. Loose monetary policy had previously supported crypto's rise.
Erosion of Speculative "Trump Premium": Bitcoin enjoyed a massive rally in 2024-2025, fueled by President Donald Trump's pro-crypto agenda, which included executive orders and relaxed regulations. However, this "Trump trade" has unwound sharply. Growing political scrutiny, including a Senate investigation into Trump's personal crypto dealings, introduced new uncertainty and regulatory risk.
Broader Market Pessimism and Profit-Taking: After a parabolic rise, the market was ripe for a correction. As negative sentiment for digital currency rose, traditional investors lost interest. As a result, massive liquidations caused Bitcoin to slump nearly 50% from its recent high of $126,000 in October (as per CNBC).
Will Bitcoin Revive Soon?
The future path for Bitcoin appears to be uncertain to some extent, with analysts divided in their opinion about its outlook.
While some firms, such as Stifel, warn that prices could fall to $38,000, representing an approximate 70% slump, others in the industry, including Abra Capital Management’s CEO, expect a rebound, barring extreme geopolitical events.
Turning the Focus on Alternative Crypto ETFs
Amid the Bitcoin carnage, investors looking to navigate this volatility may be interested in turning their focus to alternative digital assets like Solana (SOL) and XRP, and the ETFs holding them.
Known for its high-speed infrastructure, Solana has become a favorite for those seeking high-performance blockchain tech. The anticipated approval of more Spot Solana ETFs in late 2026 provides a potential floor for its valuation.
On the other hand, with its clear regulatory status following the 2025 SEC settlement, XRP has seen impressive institutional demand.
Unlike the sell-off in Bitcoin, Solana and XRP spot ETFs attracted fresh capital in recent times (as mentioned by Trading View), signaling that big money is moving toward assets designed for cross-border payment efficiency.
Moreover, considering JP Morgan’s statement (as cited in Yahoo Finance) that Bitcoin could reach $266,000 "over the long term," those who want to gain from the long-term growth of blockchain technology may consider investing in diversified basket featuring significant weights in Etherium, SOL, and XRP, along with BTC, making it a "market-wide" bet rather than a single-coin gamble.
Top Crypto ETFs to Watch
If you are looking to diversify away from the Bitcoin slump, consider adding the following ETFs to your watchlist:
Bitwise XRP ETF (XRP - Free Report)
This fund, with a market price of $17.18 as of Feb 4, 2026, offers exposure to XRP, one of the world’s largest and longest-running crypto assets. It holds assets under management (AUM) worth $208 million.
It charges 34 basis points (bps) as fees. The fund traded at a volume of 2.48 million shares in the last trading session.
Solana ETF (SOLZ - Free Report)
This fund, with a market price of $8.01 as of Feb. 5, 2026, offers exposure to one of the fastest-growing blockchain ecosystems, Solana. It holds net assets worth $80.6 million.
It charges 95 bps as fees. The fund traded at a volume of 5.55 million shares in the last trading session.
Bitwise Solana Staking ETF (BSOL - Free Report)
This fund, with a market price of $12.38 as of Feb. 4, 2026, offers exposure to Solana and also seeks to derive additional Solana through staking. It holds net assets worth $447 million.
It charges 20 bps as fees. The fund traded at a volume of 5.35 million shares in the last trading session.
Grayscale Digital Large Cap Fund (GDLC - Free Report)
This fund, with a market price of $29.02 as of Feb. 5, 2026, offers exposure to crypto “large caps” beyond just Bitcoin and Ether, covering 90% of the crypto market’s capitalization. It has AUM worth $353 million.
It charges 59 bps as fees. The fund traded at a volume of 0.41 million shares in the last trading session.