Franklin Templeton’s spot ETF application for Ethereum includes an extra feature: the ability to stake Ethereum. This sets it apart from similar applications from companies like BlackRock and Ark.
Ethereum (ETH), the second-largest cryptocurrency globally, has experienced a significant breakout, with its price rising by 6% and surpassing the $2,600 mark. This surge has contributed to Ethereum’s weekly gains, which now stand at over 15%.
Ethereum’s Price Rally and Outlook
Waiting game until #Ethereum starts to pick up pace.
Flipped the $2,150 level for support, currently waiting for a breakout for continuation to $3,500. pic.twitter.com/NCHXnu5fP3
— Michaël van de Poppe (@CryptoMichNL) February 12, 2024
Analysts are optimistic about Ethereum’s price trajectory in 2024, especially after its recent breakout, which has set the stage for a potential climb to $3,500.
Since June 2022, Ethereum’s price has been steadily increasing, marked by the formation of two higher lows indicated by green icons on the charts. The pace of this upward movement accelerated following each of these low points.
In November 2023, Ethereum’s price broke through a long-standing horizontal resistance level. This breakthrough resulted in a peak of $2,717 in January 2024, surpassing the 0.382 Fibonacci retracement resistance level.
Although there was a brief decline afterward, Ethereum managed to rise above the Fibonacci resistance last week, although it has not yet reached a new yearly high. The weekly Relative Strength Index (RSI) provides a mixed signal, with a reading above 50 and an upward trend indicating an advantage for bulls, while a reading below 50 suggests the opposite.
The recent breakout in Ethereum’s price indicates that the accumulation phase of the bear market may be over, potentially signaling a move towards higher price levels in the near future.
Rise of Spot Ethereum ETFs: Franklin Templeton Joins the Push
Despite the Securities and Exchange Commission (SEC) showing no inclination towards approving a spot Ethereum ETF, major financial institutions are persisting in their efforts. On Monday, February 12, Franklin Templeton entered the fray by filing for a spot Ether ETF, joining industry leaders like BlackRock and Ark Invest.
Franklin Templeton’s filing reveals their intent to provide an investment option similar to direct Ethereum investments. Their ETF aims to streamline the process of buying, holding, and trading digital assets across various platforms. Notably, their proposed ETF includes staking functionality, allowing the fund to earn rewards by participating in the network’s consensus mechanism.
Ethereum Staking Participation and Rates
In a recent update, Ethereum staking has experienced a notable increase, surpassing 25% participation. This uptick in involvement is expected to bolster the security of the Ethereum blockchain network.
However, despite the growing participation, Ethereum staking rates have been somewhat underwhelming, hovering around 3.5-4%. In comparison, the safest investment option, the 1-year U.S. Treasury note, offers higher returns than this.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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