Franklin Templeton, a major player in the traditional financial sector with $1 trillion in assets under management, is expanding its activities into the crypto market. Recently, the Depository Trust & Clearing Corporation (DTCC) approved Franklin Templeton’s ethereum spot ETF for creation and redemption. But what does this mean for the Ethereum price?
What does the approval of the Ethereum spot ETF mean?
Well-known crypto journalist Colin Wu pointed out the listing of the “FRANKLIN ETHEREUM TR ETHEREUM ETF” by the DTCC. The fact that this ETF appeared on DTCC’s list with a “Y” for “Creation/Redeem” is a positive sign that its launch may be near. Wu notes that this is a standard procedure to prepare for the market introduction of new ETFs, although it does not mean final approval.
Franklin Templeton’s application for the launch of the Ethereum spot ETF “FRANKLIN ETHEREUM TR ETHEREUM ETF” has been listed on the DTCC website, and the Create/Redeem column shows Y. DTCC emphasized that this is a standard practice to prepare for the launch of new ETFs to the… pic.twitter.com/YurFry4i71
— Wu Blockchain (@WuBlockchain) April 27, 2024
Currently, the crypto community is eagerly awaiting the Securities and Exchange Commission’s (SEC) decisions regarding Ethereum spot ETFs. These expectations are similar to those surrounding bitcoin spot ETFs and have created an optimistic sentiment in the crypto market.
Ethereum price under scrutiny
In terms of price development, Ethereum shows a neutral trend on the daily chart, with little price fluctuation since April 14. The price move became especially noticeable after Ethereum fell below the 50-day exponential moving average (50-EMA), which now marks a short-term resistance level of $3,258 that Ethereum needs to break.
Additionally, a weak to neutral Relative Strength Index (RSI) has limited further positive moves in Ethereum so far. However, market sentiment could turn to a bullish stance following DTCC’s recent actions.
Important announcement affects institutional investors
On the other hand, on April 26, DTCC issued an “important notice” to the financial market through its subsidiary, Depository Trust Company (DTC), that it will no longer recognize the value of collateral from cryptocurrency-based ETFs and other investment vehicles.
This development may deter institutional investors, despite increasing interest from companies like Franklin Templeton and BlackRock in real asset tokenization (RWA), which should theoretically drive demand for Ethereum’s native token, ETH.
Source: https://bitcoinmagazine.nl/nieuws/ethereum-etf-goedgekeurd-eth-koers
