Key Information:
- XRP and DOGE soared as the SEC recognized applications for their spot ETFs.
- Jupiter’s JUP token celebrated the platform’s buyback strategy.
- Bitcoin (BTC) remained stable amidst ongoing outflows from spot ETFs.
On Friday, alternative cryptocurrencies, known as altcoins, gained traction as XRP and Dogecoin (DOGE) benefited from optimism surrounding spot ETF approvals. Additionally, the JUP token linked to Solana-based decentralized exchange Jupiter received a boost from the announcement of the exchange’s buyback program.
The U.S. Securities and Exchange Commission (SEC) confirmed that it has acknowledged Grayscale’s filings for XRP and DOGE spot ETFs. As per updates released on February 13, these applications will be forwarded to the SEC’s federal register, initiating a 240-day timeline for review and potential decision on these filings.
This surge in filings for altcoin ETFs, which also included Solana’s SOL and Litecoin (LTC), indicates a growing expectation for cryptocurrencies to be more readily accepted in mainstream finance, particularly given the current political climate under Donald Trump’s presidency.
If the spot ETFs for XRP and DOGE are approved, they would facilitate institutional investors to gain exposure to these coins without the complexities of direct purchases and storage. This potential approval promises to enhance liquidity and boost demand for these digital assets.
At the time of writing, XRP was trading at $2.73, marking a 10% increase within 24 hours, making it the top performer among the 100 largest cryptocurrencies. Similarly, DOGE saw a 4% rise, as per information gathered from CoinDesk and CoinGecko.
“The SEC’s acceptance of ETF applications for XRP and DOGE, amidst a collection of altcoin ETF evaluations, including those for Solana and Litecoin, could significantly broaden institutional access and instate further liquidity in the market, which may trigger an alt-season soon,” stated Valentin Fournier, an analyst at BRN, in a communication to CoinDesk.
The overall digital asset milieu reflects slight upward movement, buoyed by affirmative regulatory updates and relief from trading conflicts. Jupiter’s JUP token also experienced a 10% rally following the decentralized exchange’s plan to allocate 50% of its protocol fees to repurchase and lock JUP tokens for three years starting February 17. This strategy aims to reduce the circulating supply and enhance the sustainability of the platform.
Meanwhile, Bitcoin continued to exhibit lackluster trading around $97,000, affected by continuing outflows from U.S.-listed spot ETFs. The week reported a cumulative $650 million net outflow from the 11 prominent BTC ETFs.
Throughout this market turbulence, Bitcoin’s stability in the face of high inflation and improving regulatory conditions provides hope for a forthcoming robust rally. Fournier added, “We advocate remaining heavily invested in digital assets, advocating a balanced exposure to BTC and ETH based on their market capitalization.”
