- The company, which manages approximately $1.5 trillion worth of assets, has filed for a Spot Ethereum ETF.
- If ETH staking, revenue, and TVL continue to increase, the price could reach $3,500 soon.
Franklin Templeton, one of the world’s largest asset management companies, joins the race to acquire Ethereum [ETH] Spot ETF. The move means Franklin Templeton joins other companies including Grayscale, ARKInvest, Fidelity, VanEck and several others that have filed the same application.
— James Seyffert (@JSeyff) February 12, 2024
The company’s filing for an Ethereum ETF may not come as a surprise to many. This is because Franklin Templeton was one of 11 companies to receive Bitcoin approval from the U.S. Securities and Exchange Commission. [BTC] Spot ETF.
Despite this, the $1.5 trillion asset management company doesn’t garner as much trading volume when compared to BlackRock or Fidelity.
Everything works together for the benefit of ETH
However, the latest development could be a good move for Ethereum price. This is because optimism regarding the launch of ETFs could drive demand for altcoins. But beyond that, other indicators supported the significant price increase.
Previously, AMBCrypto reported how 25% of the total ETH supply was staked. In this article, we also discussed how this development could cause a rise in cryptocurrencies. Between then and the time of this writing, the price of ETH rose from $2,428 to $2,645.
But supply and demand weren’t the only indicators of potential upside. Another indicator predicting this move was Ethereum fees, one of the project’s main sources of income.
Ethereum fees have increased to $1.2 billion, according to Token Terminal data.
This increase also meant that Ethereum earned more fees than Bitcoin and Tron. [TRX]. Furthermore, Ethereum’s high returns were evidence of market participants’ active use of the network.
Additionally, if demand for ETH increases due to expectations for spot ETF approval, project fees will rise. The value of ETH could also skyrocket. Therefore, predicting a rise to $3,000 seemed like a achievable target price in the coming weeks.
A new ATH may be in development
Another indicator that supports price increases is Total Value Locked (TVL). TVL measures the overall health of the protocol.
An increase in TVL means more assets are staked or locked into the protocol. This also means that market participants trust this protocol to bring more revenue.
However, as TVL decreases, the opposite is true. DeFiLlama showed that on a year-to-date (YTD) basis, Ethereum’s TVL hit a new high of $40.21 billion.
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In a very bullish situation, ETH could rise to $3,500 if earnings and TVL continue to increase.
Additionally, if the SEC approves an Ethereum spot ETF, ETH could be headed for a new all-time high (ATH). However, the price could fall below $2,500 before a potential surge.