Ethereum Spot Exchange-Traded Funds Archives

Asset Manager Files For Spot Ethereum ETF

Asset managers have gravitated toward the Ethereum spot ETF since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest manager to apply with the SEC to get approval for this financial product.

The asset manager’s move came after successfully introducing the BTC spot ETFs. This is a notable step toward making more crypto investment products accessible to institutional and individual investors.

James Seyffart, a senior analyst from Bloomberg Intelligence, also shared the update with the crypto community on X (formerly Twitter). Seyffart’s X post included a screenshot of the asset manager’s filing and data regarding other applicants.

According to the post, Franklin Templeton is the eighth company in the cryptocurrency market to file for product approval. Previous asset managers to file applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy.

Per the official filing, a Delaware statutory trust is how the Franklin Ethereum Trust is set up. The ETF aims to give investors access to ETH in a regulated manner by allowing them to store it directly through a custodian.

It states in the company’s S-1 filing that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.”

Staking is the act of locking up digital currency to maintain the operations of a blockchain network. They plan to stake some of the ETF’s ETH holdings to supplement its income through staking rewards.

The Price Of ETH Rallies Amidst The Update

Franklin Templeton’s spot Ethereum ETF application was made in light of the price of ETH experiencing an uptick. However, no solid proof exists that the latest development impacted the price of crypto assets.

Ethereum was trading at $2,661 as of press time, indicating an increase of over 7% in the past 24 hours. Data from CoinMarketCap shows that its market capitalization is also on the upside, marking an increase of over 7%.

Meanwhile, its trading volume has increased significantly by over 172% in the past day. Due to the rise, ETH now ranks third in the entire crypto market by trading volume.

Ethereum (ETH), the second largest cryptocurrency asset, is anticipated by several well-known analysts in the crypto industry to undergo a price surge in the upcoming months as the market is seeing a wave of bullish momentum.

Ethereum Poised To Go Parabolic In The Upcoming Months

Altcoin Daily crypto analysts have revealed three major factors that could propel the price of Ethereum in the coming months. The analysts shared their optimistic insights for ETH in a recent episode – “Ethereum price is still ready to explode” on YouTube.

According to the Altcoin Daily analysts, Ethereum is expected to reach $4,000 in the next three to six months from now. One of the major drivers noted by the analysts to take the price to this level is the impending “Ethereum Beacon Upgrade.”

In the video, they highlighted that the upgrade is the last big update for ETH, which is scheduled to go live in Q1 of 2024. Its primary goals are to lower transaction fees and improve layer 2 solution efficiency.

Additionally, the Ethereum Beacon upgrade promises a refined user experience. This is an important step forward toward creating a blockchain network that is more accessible and scalable. They pointed out that the update’s final test net is set to take place on Wednesday, February 7. Meanwhile, its overall mainnet roll-out is just one month away from going live.

For the second key factor, the experts have identified the hype surrounding the approval of Ethereum Spot Exchange-Traded Funds (ETFs). “I do want to be clear here the catalyst we are talking about is the anticipation of the ETH spot ETFs,” one analyst stated.

Although Ethereum futures have already garnered global permission, the analysts point out that the approval of the ETFs might signal a significant trigger for Ethereum’s long-term price growth.

Notable Shift From Bitcoin To ETH

According to the experts, the anticipation surrounding its potential approval is expected to drive ETH’s price to $4,000, akin to the excitement surrounding Bitcoin ETFs in 2023. In addition, they underscored that the BTC ETFs approval is one reason why the US Securities and Exchange Commission (SEC) can not disapprove the ETH ETFs.

If this is right, then ETH is very close to reaching the aforementioned price level. This is because the final date for ETFs approval is only 112 days from now.

Meanwhile, the last key factor highlighted by Altcoin Daily is the “Bitcoin rotations after halving towards the rest of the ecosystem.” After the upcoming Bitcoin halving event, there might be a possible fund rotation from BTC to ETH.

Altcoin Daily also mentioned a possible sell-the-news scenario post-halving that could lead to a cooldown. As a result, Ethereum might take advantage of it and become the dominant player in the crypto market.

Ethereum is currently trading a little above $2,300, indicating a 1.23% rise in the past 24 hours. Its market cap is demonstrating the same increase, while its trading volume is up by over 41% in the past day.

Ethereum