Altcoins Shine as Bitcoin Remains Steady Amid ETF Outflows
On Friday, altcoins drew significant attention, with XRP and dogecoin (DOGE) gaining momentum due to optimism surrounding spot ETF filings, while Solana’s decentralized exchange, Jupiter, saw its JUP token rise following the announcement of a buyback program.
The U.S. Securities and Exchange Commission (SEC) recently acknowledged Grayscale’s ETF applications for XRP and DOGE, according to the regulator’s updates on February 13. The filings will now move to the SEC’s federal register, starting a 240-day review process. This follows a trend of increasing altcoin ETF applications, including for Solana (SOL) and Litecoin (LTC), reflecting heightened expectations for further cryptocurrency integration into traditional finance under the leadership of President Donald Trump.
Approval of the XRP and DOGE ETFs would allow institutional investors to gain exposure to these tokens in a regulated environment, without the need for direct ownership or storage, which could ultimately drive up demand and liquidity for these assets.
XRP rose 10% in the last 24 hours, reaching $2.73, making it the top-performing altcoin by market cap. DOGE followed suit with a 4% increase. These moves were backed by data from CoinDesk and Coingecko.
Valentin Fournier, an analyst at BRN, shared with CoinDesk: “The SEC’s acknowledgment of XRP and DOGE ETF applications, along with others like Solana and Litecoin, signals growing institutional interest in altcoins. If these ETFs are approved, it could lead to a liquidity boost and an altcoin rally by the end of the year.”
Fournier added that the positive regulatory signals and easing trade tensions were contributing to the slight upward momentum in the digital asset market.
Meanwhile, Jupiter’s JUP token saw a 10% surge after the platform unveiled plans to allocate 50% of its protocol fees to repurchase and lock JUP tokens for the next three years, starting February 17. This strategy aims to reduce the token’s circulating supply and increase the platform’s long-term viability.
Bitcoin (BTC), on the other hand, remained relatively flat, hovering around $97,000 as outflows from U.S.-listed spot ETFs continued. The 11 spot BTC ETFs in the U.S. experienced a combined net outflow of $650 million this week, according to Fariside Investors.
Despite Bitcoin’s muted price movement, analysts are still optimistic about its future prospects, particularly in light of higher-than-expected U.S. CPI and PPI data released earlier this week.
“Bitcoin has shown resilience despite inflation concerns and a stronger regulatory landscape,” Fournier noted. “As the market enters an accumulation phase, we anticipate a rally in the near future. We continue to recommend a bullish approach to digital assets, balancing positions between BTC and ETH based on market size.”
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