Altcoins Surge as Bitcoin Holds Ground Amid ETF Outflows

Altcoins gained significant attention on Friday, with XRP and dogecoin (DOGE) rising in response to positive sentiment surrounding spot ETF filings, while Jupiter’s JUP token saw an uptick after the decentralized exchange revealed plans for a token buyback program.

The U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale’s ETF applications for XRP and DOGE, according to updates released on February 13. These applications are now set to be moved to the SEC’s federal register, initiating a 240-day review period. The filing trend for altcoin ETFs, including Solana (SOL) and Litecoin (LTC), signals growing anticipation for cryptocurrency’s integration into mainstream finance, especially under the current presidential administration of Donald Trump.

If approved, the XRP and DOGE ETFs would enable institutions to access these cryptocurrencies within a regulated framework, bypassing the need for direct purchases and storage. This shift could provide a liquidity boost and spark further demand for these altcoins.

XRP climbed 10% over the past 24 hours, reaching $2.73 and emerging as the best-performing top 100 cryptocurrency. DOGE also gained 4% according to data from CoinDesk and Coingecko.

Valentin Fournier, analyst at BRN, noted in an email to CoinDesk: “The SEC’s acknowledgment of ETF applications for XRP and DOGE, alongside Solana and Litecoin, marks a pivotal moment for institutional access to altcoins. Should these ETFs be approved, they could enhance liquidity and set the stage for a possible altcoin rally this year.”

Fournier added that market momentum is further supported by positive regulatory developments and easing trade tensions.

Additionally, Jupiter’s JUP token surged 10% following the decentralized exchange’s announcement that 50% of its protocol fees would be directed toward repurchasing and locking JUP tokens for three years, starting February 17. This move is aimed at reducing the token’s circulating supply and promoting long-term sustainability for the platform.

In contrast, Bitcoin (BTC) remained largely stagnant, trading around $97,000 as the outflows from U.S.-listed spot ETFs continued. Fariside Investors reported that the 11 spot BTC ETFs had seen a net outflow of $650 million this week.

Despite Bitcoin’s subdued performance, analysts maintain a positive outlook, pointing to the cryptocurrency’s resilience amid higher-than-expected U.S. CPI and PPI figures this week.

“Bitcoin’s ability to maintain stability in the face of inflationary pressures and increasing regulatory clarity could lead to a stronger rally in the near term,” said Fournier. “We recommend a continued bullish stance on digital assets, balancing exposure to BTC and ETH based on market capitalization.”