As the digital asset investment market experiences its sixth consecutive week of outflows, two cryptocurrencies are bucking the trend. Both XRP and Litecoin (LTC) are attracting funds, signaling a notable shift in investor sentiment. Here’s a closer look at what’s driving the inflow of investment into these two digital assets.
Rising Trend in Litecoin (LTC) Investments
Investment products focused on Litecoin (LTC) saw inflows of $500,000 last week, bringing the total from the start of the month to $800,000, and a cumulative $1 million since the beginning of the year, according to CoinShares data. This trend suggests a recent and increased interest in Litecoin among investors.
One plausible explanation for this shift in attention lies in the upcoming Litecoin halving event, set to occur in roughly two months. Historically, Litecoin’s price has shown growth in the periods leading up to such halving events, and it seems investors may be banking on this pattern repeating.
Inflows in XRP Despite SEC-Ripple Legal Battle
In contrast to Litecoin, XRP-focused investment products saw a comparatively modest infusion of $100,000 over the past week. However, since the start of the year, XRP has enjoyed three times the inflow of LTC, totaling $3 million.
Despite the ongoing legal dispute between Ripple Labs, the creator of XRP, and the US Securities and Exchange Commission (SEC), investor interest in XRP has been consistent since the year’s commencement. It appears that investors are adopting a cautious wait-and-see approach, likely tied to the anticipated resolution of the SEC-Ripple lawsuit, expected to conclude in the first half of 2023.
Whether there will be outflows from XRP when June arrives will be a key point to watch next week. Both XRP and Litecoin seem to be maintaining their appeal to investors, offering hope for those invested in the cryptocurrency market amidst the wider trend of investment outflows.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
