On Friday, alternative cryptocurrencies, commonly referred to as altcoins, took the spotlight as XRP and Dogecoin (DOGE) gained momentum fueled by optimism surrounding spot Exchange-Traded Funds (ETFs). Additionally, Jupiter’s JUP token, associated with the Solana-based decentralized exchange, surged following the announcement of a buyback program.
The U.S. Securities and Exchange Commission (SEC) has officially recognized Grayscale’s applications for XRP and DOGE spot ETFs. As per updates from the market regulator on February 13, these applications will now be submitted to the SEC’s federal register, triggering a 240-day countdown for review and eventual decision.
This recent surge in interest is part of a broader trend, with numerous filings for altcoin ETFs, including those for Solana’s SOL and Litecoin (LTC). Such movements indicate rising expectations for the integration of cryptocurrencies into mainstream financial markets, particularly under the potentially favorable regulations anticipated during Donald Trump’s presidency.
The possible approval of XRP and DOGE spot ETFs could be a game-changer, as these regulated investment vehicles would simplify how institutional investors can gain exposure to these cryptocurrencies without the complexities of direct purchases and storage. This streamlining could significantly enhance market liquidity and increase demand for these tokens.
At the time of this report, XRP was trading at $2.73, reflecting a remarkable 10% increase within a 24-hour window, making it the top-performing cryptocurrency by market capitalization. Similarly, DOGE experienced a 4% rise, according to data from CoinDesk and Coingecko.
Valentin Fournier, an analyst at BRN, noted in an email to CoinDesk, “In a notable development, the SEC has accepted ETF applications for XRP and Dogecoin, adding to a growing list of altcoin ETF reviews, including Solana and Litecoin. If approved, these products could significantly expand institutional access to altcoins, injecting liquidity and potentially setting the stage for an alt-season later this year.” Fournier also mentioned that digital assets exhibit slight upward momentum, buoyed by encouraging regulatory indications and diminishing trade tensions.
Jupiter’s JUP token also climbed 10% in response to the decentralized exchange’s initiative to allocate half of its protocol fees toward repurchasing and locking JUP tokens for a duration of three years, which commenced on February 17. This strategy aims to cut the circulating supply of the token and reinforce the platform’s sustainability.
In contrast, Bitcoin (BTC) continued to trade languidly at approximately $97,000, amid persistent outflows from U.S.-listed spot ETFs. The eleven BTC ETFs available in the U.S. have collectively seen a net outflow of $650 million this week, as reported by Faraside Investors.
Despite this subdued price action, there remains a glimmer of hope against the backdrop of unexpectedly elevated U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) figures released this week. Fournier reflects this sentiment, asserting, “Given Bitcoin’s resilience in the face of high inflation and improving regulatory clarity, this accumulation phase may lead to a strong rally in the coming weeks. We maintain a bullish outlook and recommend continued heavy exposure to digital assets, balancing BTC and ETH based on market capitalization.”
