Asset management company Franklin Templeton has submitted an application for a spot Ethereum exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC).
This comes amid recent filings by asset management firms including BlackRock, Grayscale and VanEck.
Franklin Templeton submits application for spot Ethereum ETF
A recent US SEC filing revealed Franklin Templeton’s plans to launch a spot Ethereum ETF. However, the filing warns regulators that potential price fluctuations in the cryptocurrency market could impact investors’ holdings.
“Trading prices for many digital assets, including Ethereum, have recently experienced extreme volatility and are likely to continue to do so in the future. Extreme volatility in the future, including further declines in the trading price of Ethereum, could have a material adverse effect on the value of the stock and could result in the loss of all or a significant portion of its value.”
It also highlights that Franklin Templeton’s timing of “reaching the market and fee structure” can impact a fund’s success compared to its competitors.
Read more: Ethereum (ETH) price prediction 2024/2025/2030
Although there has long been speculation that Ethereum’s price has been “undervalued,” it has experienced a surge in price this week, and considering the news of Franklin Templeton’s appearance, investors believe the price could rise further.
At the time of publication, the price of Ethereum is $2,669.
On January 9, BeInCrypto reiterated the belief of cryptocurrency investor “DCInvestor” that Ethereum “will perform better and retain more value than most assets after this cycle.”
“IMO it’s massively undervalued right now.”
Spot Ethereum ETF: A hot topic in the industry
Meanwhile, BlackRock CEO Larry Fink recently expressed strong interest in the Ethereum ETF.
Fink expressed optimism about a potential Ethereum ETF. This stems from his belief in the potential to drive widespread adoption of real-world asset tokenization. This is a trend he looks forward to with enthusiasm for the future.
“I see the value of owning an Ethereum ETF. “This is just a stepping stone towards tokenization, and I believe this is where we will go.”
All the hype surrounding Ethereum has left cryptocurrency analysts wondering if Ethereum will reach $25,000 in the near future.
Read more: Ethereum Classic (ETC) Price Prediction 2023/2025/2030
Crypto analyst DeFi Dad attributes Ethereum’s potential to reach that level to its onboarding funnel and layer 2 solutions currently being developed on the network.
““It will be difficult to compete with the Ethereum onboarding funnel – Gaming L2 (IMX, Ronin) – Enterprise L2 (Base, Worldcoin) – Social L2 (Lens, Farcaster) – and all the (hundreds?) other L2s pouring in. This is a token to acquire users.”
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