- The company, which manages assets worth about $1.5 trillion, has filed for a spot Ethereum ETF.
- If ETH’s stakes, turnover, and TVL continue to rise, its price could soon reach $3,500.
Franklin Templeton, one of the largest asset managers in the world, has joined the race to create Ethereum [ETH] spot ETF. The move means Franklin Templeton has joined others including Grayscale, ARKInvest, Fidelity, VanEck and a few others who have also filed the same.
Franklin Templeton has just arrived at the place #Ethereum ETF race. pic.twitter.com/zJvk9seXe3
— James Seyffart (@JSeyff) February 12, 2024
The company’s filing for an Ethereum ETF may not come as a surprise to many. This was because Franklin Templeton was one of eleven companies to receive the US SEC approval for a Bitcoin [BTC] spot ETF.
Still, the $1.5 trillion asset management firm hasn’t seen high volume compared to BlackRock and Fidelity.
All things work together for the good of ETH
However, the latest development could be a good move for Ethereum’s price. This is because optimism over the ETF’s launch could boost demand for the altco. But beyond that, other figures supported a significant price increase.
Previously, AMBCrypto reported how 25% of the total ETH supply had been staked. In the article, we also discussed how the development could trigger a rally for the cryptocurrency. Between then and the time of writing, the price of ETH has risen from $2,428 to $2,645.
But supply and demand weren’t the only indicators pointing to a possible rally. Another metric that predicted the move was Ethereum’s fees, one of the project’s main sources of revenue.
According to data from Token Terminal, Ethereum’s fees were increased up to $1.2 billion.
Source: Token terminal
The increase also meant that Ethereum earned more in fees than Bitcoin and Tron [TRX]. Furthermore, the high turnover for Ethereum was evidence that market participants are actively using the network.
If demand for ETH increases due to expectations surrounding approval of a spot ETF, costs for the project would increase. The value of ETH could also rise. Therefore, predicting a move to $3,000 seemed like an achievable price target for the coming weeks.
A new ATH could be in the works
Another indicator that supports a price increase is the Total Value Locked (TVL). The TVL measures the overall health of a protocol.
When the TVL increases, it means more assets are deployed or committed to a protocol. This also implies that market players trust that the protocol will generate greater returns.
But it is the other way around when the TVL decreases. On a Year-To-Date (YTD) basis, DeFiLlama showed that Ethereum’s TVL hit a new high at $40.21 billion.
Source: DeFiLlama
Is your portfolio green? Check the ETH profit calculator
In a very bullish situation, ETH could rise to $3,500 if sales increased, and TVL continued to rise.
Additionally, if the SEC approves spot ETFs for Ethereum, ETH could be on its way to a new All-Time High (ATH). But before the potential jump, the price could fall below $2,500.