XRP and Litecoin Experience Significant Inflow Surge Amid Crypto Fund Growth

• The XRP and Litecoin investment products have attracted investors’ attention due to their deep liquidity and potential to break out in a parabolic rally in the near term.
• While Ripple’s XRP has faced regulatory hurdles in the United States, Litecoin has enjoyed regulatory clarity similar to Bitcoin due to its Proof-of-Work consensus method.

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The cryptocurrency market has registered significant cash inflows year-to-date fueled by the notable demand from institutional investors. The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has increased the confidence in the crypto assets as a new type of asset class to more investors. 

According to market data provided by CoinShares, the crypto investment products have registered about $5.2 billion in cash inflows year-to-date to a total of around $67 billion in AUM.

During the last week, the total cash inflow to crypto investment products totaled around $2.45 billion. The majority of the crypto cash inflow was directed to Bitcoin with around $2.42 billion or around 99 percent.

Closer Look at XRP Cash Inflow and Market Outlook

According to the CoinShares report, XRP’s investment products recorded a total cash inflow of about $0.4 million during the last week. As a result, the XRP’s investment products have received a total of around $4 million in cash inflow year-to-date. 

Although the XRP’s investment products have a total of $73 million in Assets Under Management (AUM), the instrument has faced significant headwinds from ongoing regulatory scrutiny.

Late last week, Jupiter Asset Management (JUN), a London-listed firm with more than $65 billion in AUM, announced that it had to liquidate its $2.58 million invested in 21Shares’ Ripple XRP ETP at a loss of $834. 

The XRP and Ripple community, however, continue to fight for regulatory clarity in the United States through the ongoing lawsuit filed by the SEC. A win for Ripple in the upcoming civil trial will boost XRP price to a parabolic rally, perhaps beyond its all-time high (ATH). 

As of this report, XRP price had gained about 2 percent in the past 24 hours to trade around 56 cents.

Litecoin Cash Inflow Raises Bullish Hopes

The Litecoin (LTC) network has been on the receiving end in the recent past for underperforming in the Bitcoin (BTC) led crypto bullish breakout. Litecoin’s investment products attracted around $0.6 million in cash inflow last week, thus currently have a total of $115 million in Assets Under Management (AUM).

 As a result, Litecoin’s investment products have outshined Cardano (ADA) and Solana (SOL), which is an indication of heightened crypto cash circulation.

Litecoin network is the third largest proof-of-work secured blockchain and currently has around 8.76 million non-zero holders. However, Litecoin’s price has failed to rally parabolically after the last two halvings, whereby the community anticipates this bull cycle will be different. 

According to the latest market data, Litecoin’s price has gained around 4.4 percent in the past two weeks to trade around $70 on Tuesday.

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