Litecoin ($LTC) and $XRP Investment Products Shine as Outflows Near $90 Million

Cryptocurrency investment products have seen a total of $88 million in outflows last week, culminating in a substantial eight-week outflow totaling $417 million. Products offering exposure to Litecoin ($LTC) and $XRP stood out, however, with significant inflows.

According to CoinShares’ Digital Asset Fund Flows Weekly report, the ogoing trend mirrors a previous record-breaking 12-week withdrawal period observed from April to June of the preceding year.

The outflows, according to the firm, could be related to current monetary policies. With the prospect of rising interest rates and no clear endpoint in sight, investors appear to be exercising caution in their digital asset strategies.

It’s important to point out that a staggering 87% of outflows were from a single cryptocurrency investment products provider, 3iQ, as the firm saw outflows of $76.9 million over the past week, and around $286 million so far this year.

Bitcoin, the dominant player in the digital currency sphere, faced a rough patch with outflows totaling $52 million. This setback marks an eight-week outflow aggregate of $254 million, constituting 1.2% of total assets under management (AUM). Furthermore, short-Bitcoin positions saw a seven-week outflow of $1.1 million, representing a sizable 44% of AUM.

The second largest cryptocurrency by market capitalization, Ethereum, wasn’t spared either. It witnessed its most substantial single-week outflow since the “Merge” in September of the previous year, with an exodus of $36 million. However, Ethereum’s overall performance paints a less dire picture than Bitcoin’s, with total outflows accounting for a mere 0.6% of AUM.

In stark contrast to Bitcoin and Ethereum, altcoins have largely bucked the trend of outflows this year. Over the past week LTC saw $700,000 of inflows, bringing year-to-date inflows to $2 million. XRP, meanwhile, saw $500,000 in inflows, bringing year-to-date flows to $4 million.

As CryptoGlobe reported, XRP investment products also stood out over the past week, as they brought in inflows while outflows in the cryptocurrency space remained steady.

Inflows are surging at a time in which XRP has been adding billions to its market cap over a number of factors. These factors include XRP seeing its second and third-largest address activity spikes of all time, in the span of just two days and Ripple’s legal battle with the SEC expected to end in the near future.

Featured image via Pixabay.

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