Investors are showing interest in XRP and Litecoin investment products due to their liquidity and potential for a significant rally. While XRP has faced regulatory challenges in the US, Litecoin has enjoyed regulatory clarity similar to Bitcoin. The cryptocurrency market has seen substantial cash inflows this year, driven by institutional demand, and the approval of spot Bitcoin ETFs in the US has increased confidence in crypto assets. CoinShares data shows that crypto investment products have attracted around $5.2 billion in cash inflows this year, bringing the total assets under management to approximately $67 billion.
In the past week alone, crypto investment products received around $2.45 billion in cash inflows, with the majority going towards Bitcoin. However, XRP’s investment products only received a total cash inflow of about $0.4 million last week and $4 million year-to-date. Despite having $73 million in assets under management, XRP investment products have faced challenges due to regulatory scrutiny. Jupiter Asset Management recently liquidated its $2.58 million investment in 21Shares’ Ripple XRP ETP at a loss.
The XRP and Ripple community continue to advocate for regulatory clarity in the US through the ongoing SEC lawsuit. A positive outcome for Ripple in the civil trial could lead to a significant rally in XRP’s price. Currently, XRP’s price has increased by 2% in the past 24 hours, trading at around 56 cents.
On the other hand, Litecoin’s investment products attracted around $0.6 million in cash inflows last week, bringing its total assets under management to $115 million. This outperformed Cardano and Solana, indicating increased cash circulation in the Litecoin network. Although Litecoin is the third largest proof-of-work blockchain and has a large number of holders, its price has failed to rally significantly after the last two halvings. However, the community anticipates that this bull cycle will be different. Currently, Litecoin’s price has increased by 4.4% in the past two weeks, trading at around $70.
