Alternative cryptocurrencies, or altcoins, made waves Friday as XRP and dogecoin (DOGE) drew strength from spot ETF optimism and Solana-based decentralized exchange Jupiter’s JUP token cheered the platform’s buyback program.
The U.S. Securities and Exchange Commission (SEC) has acknowledged Grasycale’s applications for XRP and dogecoin (DOGE) spot ETFs, Fed. 13 updates by the market regulator show. These filings will now be submitted to the SEC’s federal register, setting off a 240-day deadline to review and decide on the applications.
Recently, there has been a wave of filings for altcoins ETFs, including Solana’s SOL and Litecoin (LTC), indicating expectations for accelerated integration of cryptocurrencies into mainstream finance under Donald Trump’s Presidency.
Potential approval of XRP and DOGE spot ETFs, regulated and familiar investment vehicles, would make it easier for institutions to take exposure to these coins without directly purchasing and storing them. That could enhance market liquidity and boost demand for these tokens.
XRP traded higher at $2.73 at press time, up 10% on a 24-hour basis. It was the best-performing top 100 cryptocurrency by market value. Meanwhile, DOGE traded 4% higher, according to data source CoinDesk and Coingecko.
“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,” Valentin Fournier, analyst, BRN told CoinDesk in an email.
Digital assets are showing slight upward momentum, supported by positive regulatory signals and easing trade tensions,” Fournier added.
Jupiter’s JUP token also traded 10% higher in response to the decentralized exchange’s plan to allocate 50% of its protocol fees toward repurchasing and locking JUP tokens for three years from Feb. 17. The plan aims to reduce the token’s circulating supply and boosts the platform’s sustainability.
Bitcoin (BTC), meanwhile, continued to trade lacklustre, around $97,000 amid continued outflows from the U.S.-listed spot exchange-traded funds (ETFs).
The 11 spot BTC ETFs listed in the U.S. have witnessed a cumulative net outflow of $650 million this week, according to Farisde Investors.
Still, the dull price action offered hope against the backdrop of hotter-than-expected U.S. CPI and PPI releases this week.
“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,” Fournier said.