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This Major Asset Management Firm Applied for a Spot Ethereum ETF 

2 mins
Updated by Kyle Baird
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In Brief

  • Franklin Templeton files for a spot Ethereum ETF with the US SEC amid industry peers' filings.
  • The asset management firm acknowledges potential price volatility impacting investors' holdings.
  • The success of Franklin Templeton's ETF may hinge on market timing and competitive fee structure.
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Franklin Templeton, an asset management firm, has submitted a filing for a spot Ethereum exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC).

This comes amid recent filings from asset management firms, including BlackRock, Grayscale, and VanEck.

Franklin Templeton Submits Spot Ethereum ETF Application

A recent US SEC filing reveals Franklin Templeton’s plan to launch a spot Ethereum ETF. However, the filing warns the regulator of potential volatile price swings in the crypto market, impacting investors’ holdings.

“The trading prices of many digital assets, including ether, have experienced extreme volatility in recent periods and may continue to do so. Extreme volatility in the future, including further declines in the trading prices of ether, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value.”

Furthermore, it highlights that Franklin Templeton’s timing in “reaching the market and fee structure,” could impact how successful the fund is in comparison to its competitors.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum’s price has been considered “undervalued” for quite some time. However, this week, it has experienced a price surge, which investors believe may rise even further, given the news of Franklin Templeton coming into play.

At the time of publication, Ethereum’s price is $2,669.

Ethereum Price Chart 1 Month. Source: BeInCrypto
Ethereum Price Chart 1 Month. Source: BeInCrypto

On January 9, BeInCrypto reiterated crypto investor “DCInvestor” belief that Ethereum “will do better and retain more value after this cycle than the vast majority of assets.”

“IMO it’s insanely undervalued at the moment.”

Spot Ethereum ETF: A Talking Point for the Industry

Meanwhile, BlackRock CEO Larry Fink recently expressed a keen interest in an Ethereum ETF.

Fink expressed optimism for a potential Ethereum ETF. This is driven by his belief in its potential to catalyze broader adoption of real-world asset tokenization. This is a trend he anticipates with enthusiasm for the future.

“I see value in having an Ethereum ETF. These are just stepping stones towards tokenization and I really do believe this is where we’re going to be going.”

All the hype around Ethereum has led to crypto analysts wondering whether Ethereum will reach $25,000 in the near future.

Read more: Ethereum Classic (ETC) Price Prediction 2023/2025/2030

DeFi Dad, a crypto analyst, attributes Ethereum’s potential to reach that level to its onboarding funnel and the layer-2 solutions currently under development on the network.

“Going to be hard to compete with the Ethereum onboarding funnel – Gaming L2s (IMX, Ronin) – Corporate L2s (Base, Worldcoin) – Social L2s (Lens, Farcaster) – All of the other (hundreds?) of L2s spitting out tokens to acquire users.”

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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