Altcoin Surge Driven by SEC Developments
Alternative cryptocurrencies, commonly known as altcoins, experienced a significant rally on Friday, with XRP and Dogecoin (DOGE) gaining traction amid a wave of optimism surrounding spot Exchange-Traded Fund (ETF) filings. Additionally, the JUP token from the Solana-based decentralized exchange Jupiter saw a surge in value following the announcement of an exciting buyback initiative.
SEC Acknowledges ETF Applications for XRP and DOGE
In a noteworthy update, the U.S. Securities and Exchange Commission (SEC) has officially recognized Grayscale’s applications for XRP and DOGE spot ETFs, as revealed on February 13. These applications are now set to be submitted to the SEC’s federal register, initiating a 240-day window for the regulator to review and make decisions on the filings.
The recent influx of ETF applications for various altcoins, including Solana’s SOL and Litecoin (LTC), signals a growing interest in integrating cryptocurrencies into mainstream finance, especially under the potential influence of the upcoming presidential administration.
Impact of Potential ETF Approvals
The possible approval of XRP and DOGE spot ETFs would represent a significant shift in the accessibility of these cryptocurrencies for institutional investors. Regulated and well-understood investment vehicles would allow institutions to gain exposure to these digital assets without the need for direct purchases or storage. This could enhance market liquidity and drive demand for both XRP and DOGE.
As of now, XRP has seen a remarkable increase, trading at $2.73—up 10% in the past 24 hours, making it the top performer among the top 100 cryptocurrencies by market capitalization. DOGE has also witnessed a 4% rise during the same period, according to data from CoinDesk and Coingecko.
Expert Insights on Market Trends
Valentin Fournier, an analyst at BRN, remarked, “The SEC’s acceptance of ETF applications for XRP and Dogecoin is a significant development, contributing to a growing list of altcoin ETF reviews, including those for Solana and Litecoin. If these products receive approval, they could greatly enhance institutional access to altcoins, injecting liquidity and potentially setting the stage for an altcoin season later this year.” Fournier further noted that the digital asset market is experiencing slight upward momentum, buoyed by positive regulatory signals and easing trade tensions.
Jupiter’s JUP Token Buyback Plan
Meanwhile, Jupiter’s JUP token also enjoyed a 10% rise following the announcement of a strategic buyback plan. The decentralized exchange plans to allocate 50% of its protocol fees toward repurchasing and locking JUP tokens for a period of three years starting February 17. This initiative aims to reduce the token’s circulating supply while enhancing the platform’s overall sustainability.
Bitcoin’s Stability Amid Market Fluctuations
In contrast, Bitcoin (BTC) has been trading in a lackluster manner, hovering around $97,000. This comes amid significant outflows from U.S.-listed spot ETFs, with the 11 available spot BTC ETFs experiencing a cumulative net outflow of $650 million this week, as reported by Farisde Investors.
Despite these challenges, some analysts remain optimistic. “Bitcoin has shown resilience in the face of rising inflation and improved regulatory clarity. This accumulation phase could lead to a strong rally in the coming weeks,” Fournier stated. He maintains a bullish outlook and recommends continued investment in digital assets, suggesting a balanced exposure to BTC and ETH based on their market capitalizations.
