Altcoins Shine as Bitcoin Holds Firm Amid ETF Outflows and Regulatory Developments
Alternative cryptocurrencies, or altcoins, saw significant gains on Friday, with XRP and Dogecoin (DOGE) benefiting from a growing optimism around spot ETF filings, while Jupiter’s JUP token surged after the decentralized exchange unveiled a new buyback initiative.
The U.S. Securities and Exchange Commission (SEC) has confirmed it is reviewing Grayscale’s applications for XRP and DOGE spot ETFs, according to the SEC’s latest updates released on February 13. These applications will now proceed to the SEC’s federal register, kicking off a 240-day period for the commission to make a decision. The surge in altcoin ETF filings, including Solana (SOL) and Litecoin (LTC), points to rising expectations for cryptocurrencies’ integration into mainstream financial systems under President Trump’s administration.
If approved, the XRP and DOGE ETFs could provide institutional investors with an easier and regulated way to gain exposure to these digital assets, boosting liquidity and demand. This could mark a significant step in the mainstream adoption of cryptocurrencies.
XRP climbed 10% to $2.73, making it the top performer among the top 100 cryptocurrencies by market cap. DOGE followed with a 4% increase, according to data from CoinDesk and CoinGecko.
“The SEC’s decision to review ETF applications for XRP and DOGE, as well as other altcoins like Solana and Litecoin, is a promising development that could open the doors to institutional investments and increase liquidity in the altcoin market,” said Valentin Fournier, analyst at BRN. “If these ETFs are approved, it could spark a surge in altcoin prices later in the year.”
The positive regulatory signals and reduced trade tensions are also contributing to the upward momentum seen across digital assets, according to Fournier.
Jupiter’s JUP token gained 10% following the announcement that the decentralized exchange would allocate 50% of its protocol fees towards repurchasing and locking JUP tokens for three years starting February 17. This strategy aims to reduce the circulating supply of JUP tokens and ensure the platform’s long-term sustainability.
Meanwhile, Bitcoin (BTC) continued to trade relatively flat around $97,000 as outflows from U.S.-listed spot ETFs persisted. According to Fariside Investors, a total of $650 million has been withdrawn from the 11 BTC spot ETFs listed in the U.S. this week.
Despite Bitcoin’s stable price action, there remains optimism in the market following stronger-than-expected U.S. CPI and PPI data earlier this week.
“Bitcoin’s resilience despite inflationary pressures and growing regulatory clarity signals that the current consolidation phase could soon lead to a breakout,” said Fournier. “We maintain a positive outlook for digital assets, with a focus on adjusting exposure between BTC and ETH based on market dynamics.”
