The US ETF market has been quite lively recently. On the surface, it seems prosperous, but behind the scenes, a major capital shift is underway.

The data is in front of us: Bitcoin spot ETFs have experienced outflows of $2.7 billion over five weeks, Ethereum is also shrinking, but the newly launched XRP ETF has attracted funds for 28 consecutive days, totaling $1.14 billion. Interestingly, the SOL ETF, which has fallen 53%, still has institutions bottoming out.

What does this indicate? Institutions are not retreating from the crypto market but are making micro-adjustments to their asset allocation. They are shifting focus from "big brother" BTC and ETH to assets like XRP and SOL, which have ETF followings and updated narratives. XRP's previous legal disputes have been settled, and the market is once again seeing the possibility of compliance; although SOL looks bleak in the short term, its ecosystem remains intact, and institutions are looking at the longer-term story.

What should retail investors do?

**Core Holdings**: Do not easily move Bitcoin and Ethereum; short-term fluctuations won't change the long-term pattern. They should be your ballast.

**Rotation Opportunities**: Pay attention to sectors like XRP and SOL that are supported by ETFs, but avoid chasing highs. Enter only after clear pullback signals—there's no rush.

**Diversify Holdings**: Institutions don't put all their eggs in one basket, and retail investors should play it the same way. Avoid going all-in on a single coin; the risk is too high.

The crypto market is essentially a process where large-cap stocks rotate into small- and mid-cap stocks, and vice versa. Understanding the rhythm and adjusting flexibly is the way to survive longer.