Ethereum Surges 7.7% as Franklin Templeton Files for Ethereum ETF Spot
Ethereum experiences a significant surge of 7.7% in the last 24 hours, reaching $2,673, following news of Franklin Templeton’s spot Ethereum ETF application.
In a market-wide rally, Bitcoin sees a 4.1% increase in price, surpassing the $50,000 mark last night.
Exchange-Traded Funds (ETFs) are investment vehicles designed to directly invest in underlying assets, offering a regulated option for individuals with brokerage accounts to invest without the risks associated with holding crypto assets directly.
The US Securities and Exchange Commission recently approved Bitcoin ETF applications from ten prominent investment companies, including Franklin Templeton, which manages $1.5 trillion in assets. These Bitcoin ETFs have proven highly successful, attracting billions of dollars in inflows during their first month of trading.
Given the success of Bitcoin ETFs, it is widely speculated that Ethereum ETFs are now on the horizon. Multiple companies, such as BlackRock, Fidelity, Grayscale, Ark Invest, and 21Shares, have recently filed for Ethereum ETFs, joining Franklin Templeton’s latest application. The approval process by the SEC will conclude by May 23. If Bitcoin’s history is any indication, there is the potential for further growth leading up to this deadline.
Analyzing the trading chart, Ethereum currently stands around $8 higher than its 30-day Moving Average, demonstrating the immense enthusiasm surrounding the coin. However, the Relative Strength Index (RSI) is approaching 70, indicating that the coin may become “overbought” and suggesting that the rally could cool down soon.
Ethereum stands as blockchain’s second biggest innovation after Bitcoin, primarily due to its high-functionality smart contracts. Investors seeking exposure to Ethereum’s smart contract capabilities can now do so and earn Bitcoin through a new Ethereum-based token named Bitcoin Minetrix (BTCMTX). BTCMTX has raised $11.5 million in an ongoing presale with only two days left.
BTCMTX leverages Ethereum’s smart contract functionality, allowing investors to engage in cloud mining for Bitcoin without the need to invest in specialized mining equipment. Through a straightforward mechanism, users can purchase and stake BTCMTX, with no minimum buy requirement and simple token withdrawal. This presents a relatively low-risk opportunity to participate in the mining sector.
Staking BTCMTX generates cloud mining credits, representing the hash power available to participants. Greater hash power facilitates faster mining, as the Bitcoin cloud mining software attempts to solve the network’s cryptographic code and validate transaction blocks to earn Bitcoin rewards.
The BTCMTX platform rewards staking with additional BTCMTX, further fueling the staking and mining cycle and generating dual revenue streams.
Disclaimer: Investing in crypto assets carries a high level of risk. This article is for informational purposes only and should not be considered investment advice. There is a possibility of losing all invested capital.
Analyst comment
Positive news: Ethereum surges 7.7% and reaches $2,673 following Franklin Templeton’s Ethereum ETF application.
Market analysis: The market is likely to experience further growth as more companies file for Ethereum ETFs and the SEC approval process concludes. However, the rally may cool down soon due to the RSI approaching 70 and Ethereum becoming potentially “overbought.”
