The investment products for XRP and Litecoin have caught the attention of investors due to their high liquidity and potential for a significant rally in the near future.
While Ripple’s XRP has faced regulatory challenges in the United States, Litecoin has enjoyed regulatory clarity similar to Bitcoin thanks to its Proof-of-Work consensus method.
The cryptocurrency market has seen substantial inflows of cash this year, driven by increased demand from institutional investors. The approval of spot Bitcoin exchange-traded funds (ETFs) in the US has boosted confidence in crypto assets as a new type of asset class, attracting more investors.
According to market data from CoinShares, crypto investment products have seen approximately $5.2 billion in cash inflows year-to-date, with a total of around $67 billion in assets under management (AUM).
In the past week alone, crypto investment products received approximately $2.45 billion in cash inflows. The majority of these inflows went to Bitcoin, accounting for around $2.42 billion or about 99%.
Taking a closer look at XRP’s cash inflow and market outlook, the CoinShares report reveals that XRP’s investment products received around $0.4 million in cash inflows in the past week. So far this year, these products have received a total of approximately $4 million in cash inflows.
Despite having $73 million in AUM, XRP’s investment products have faced significant challenges due to ongoing regulatory scrutiny. Jupiter Asset Management, a London-listed firm with over $65 billion in AUM, recently announced that it had to sell its $2.58 million investment in 21Shares’ Ripple XRP ETP at a loss of $834.
However, the XRP and Ripple community continues to push for regulatory clarity in the US through the ongoing lawsuit filed by the SEC. A favorable outcome for Ripple in the upcoming civil trial could lead to a parabolic rally in XRP’s price, potentially surpassing its all-time high.
At the time of this report, XRP’s price had increased by about 2% in the past 24 hours, trading at around 56 cents.
On the other hand, Litecoin’s cash inflow has raised hopes among bullish investors. In the past week, Litecoin’s investment products received approximately $0.6 million in cash inflows, bringing the total AUM to $115 million.
This puts Litecoin ahead of Cardano and Solana in terms of cash circulation in the crypto market.
Despite being the third-largest proof-of-work secured blockchain with around 8.76 million non-zero holders, Litecoin’s price has failed to experience a parabolic rally after the last two halvings. However, the community anticipates that this bull cycle will be different.
According to the latest market data, Litecoin’s price has increased by around 4.4% in the past two weeks, trading at around $70 on Tuesday.