Bitcoin is trading above $50,000 again, but this time everything is different. Franklin Templeton joins the Ethereum ETF race. | With ASTL Token (Astol Token) | Coins | February 2024
BlackRock, VanEck, Fidelity, Invesco Galaxy, Grayscale and Hashdex are ETF contenders seeking SEC approval. Franklin Templeton has become the latest Wall Street firm to apply to create a spot Ethereum (ETH) exchange-traded fund in the United States. The $1.5 trillion asset manager filed its S-1 filing with the U.S. Securities and Exchange Commission on February 12. If approved, it will be listed on the Chicago Board Options Exchange (CBOE) as the ‘Franklin Ethereum ETF’. Interestingly, Franklin Templeton announced his intention to invest a portion of his ETF Ethereum in equity to generate additional income, similar to ARK’s 21Shares S-1 amendment last week. Franklin Templeton said it will rely on staking Ethereum from the trust’s cold storage wallet and, as a result, the trust will receive staking rewards, which are considered income.
According to the schedule, the SEC must issue a decision on VanEck’s application by May 23, ARK 21Shares by May 24, Hashdex by May 30, Grayscale by June 18, and Invesco by July 5. Fidelity and BlackRock applications must be approved or rejected by August. However, Bloomberg ETF analyst James Seyffarth said a decision on all applicants would not be made by May 23, similar to how U.S. securities regulators made decisions on all spot Bitcoin ETFs on January 10. We expect it to be. Seyffarth’s colleague, Bloomberg ETF analyst Eric Balchunas, reduced the odds of a spot Ethereum ETF being approved in 2024 from 70% to 60%.
Meanwhile, Bitcoin’s rise to $50,000 on Monday comes amid rising institutional demand, possible interest rate changes, and looming shortages due to halving (a halving of Bitcoin miners’ rewards). This is a stark contrast to the situation just two years ago. Data shows that the last time Bitcoin hit $50,000 was in December 2021, unknown to most investors. At the time, the cryptocurrency was about to collapse into an ongoing bear market marked by 11 consecutive interest rate hikes in the United States. Bitcoin fell significantly due to the exodus of cryptocurrency companies and retail investors. However, all signs now suggest that macroeconomic conditions are becoming increasingly favorable for risk assets such as Bitcoin. The first big catalyst that many investors are looking forward to is the upcoming Bitcoin halving. The halving is expected in April, when Bitcoin miners’ mining rewards will be cut in half. Many believe this is a bullish catalyst for a long-term rise in BTC price. There is also positive sentiment building about the performance of Bitcoin ETFs, giving the market confidence that institutions are buying Bitcoin at an increasingly rapid pace. Spot Bitcoin ETFs have seen total inflows of $1.1 billion over the past week, the largest seven-day inflow period since the ETF was first launched on January 11, according to a February 12 CoinShares report. It was.
The sharp rise in the price of BTC triggered the liquidation of short positions by traders on large cryptocurrency exchanges. According to the Coinglass service, the total amount of ‘short sales’ liquidated from Bitcoin in just one hour exceeded $25 million. Ethereum (ETH), the second largest cryptocurrency by market capitalization, has also grown, exceeding $2,500, but lags behind the market leader in terms of growth dynamics.
The ‘fear and greed’ index of the cryptocurrency market rose to 79 points out of 100. This means that the participants’ psychology shifted to the ‘extreme greed’ category. Current values are considered very high. This was last observed in January, with Bitcoin rising to $47,000.
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