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Ethereum: What the latest ETF filing means for ETH prices

3min Read

The latest ETF application may drive more demand for ETH. Is a new ATH closer than imagined?

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  • The firm, which manages assets worth around $1.5 trillion, filed for a spot Ethereum ETF.
  • If ETH staking, revenue, and TVL continue to increase, the price might hit $3,500 soon.

Franklin Templeton, one of the world’s largest asset management firms, has joined the race for an 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 application.

The firm’s application for an Ethereum ETF might not come as a surprise to many. This was because Franklin Templeton was one of the 11 firms that got the U.S. SEC nod for a Bitcoin [BTC] spot ETF.

Despite that, the $1.5 trillion asset management firm has not gotten a high volume when compared to BlackRock and Fidelity.

All things are working together for ETH’s good

However, the latest development could be a good move for Ethereum’s price. This is because optimism about the launch of the ETF might drive demand for the altcoin. But beyond that, other metrics were supporting 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 spark a rally for the cryptocurrency. Between then and the time of writing, ETH’s price has increased from $2,428 to $2,645.

But demand and supply were not the only indicators suggesting a possible rally. One other metric predicting the move was Ethereum’s fees which is one of the project’s major sources of revenue.

According to data from Token Terminal, Ethereum’s fees had increased to $1.2 billion.

Ethereum fees according to data from Token Terminal

Source: Token Terminal

The increment also meant that Ethereum made more in fees than Bitcoin and Tron [TRX]. Furthermore, a high revenue for Ethereum was evidence that market participants are actively using the network.

Also, if demand for ETH increases due to the anticipation around a spot ETF approval, fees for the project would climb. ETH’s value might also jump. Therefore, predicting a move to $3,000 looked like a feasible price target in the coming weeks.

A new ATH could be in the works

Another indicator supporting 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 staked or locked in a protocol. This also implies that market players trust the protocol to bring more yield.

But it is the other way around when the TVL decreases. On a Year-To-Date (YTD) basis, DeFiLlama showed that Ethereum’s TVL tapped a new high at 40.21 $billion.

Data showing the value of assets locked on the Ethereum protocol

Source: DeFiLlama

Is your portfolio green? Check the ETH Profit Calculator

In a highly bullish condition, ETH might rise to $3,500 should the revenue, and TVL continue to increase.

In addition, if the SEC approves spot ETFs for Ethereum, ETH might head for a new All-Time High (ATH). But before the potential jump, the price might retrace below $2,500.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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