Ondo Finance, supported by Pantera Capital, achieves record-breaking peak
Ondo Finance, a platform backed by Pantera Capital that deals with tokenized real-world assets, experienced a significant surge in the value of its ONDO token, which rose by almost 20% to reach a record high of $1.16. This increase in price came after the U.S. Securities and Exchange Commission (SEC) approved exchange-traded funds (ETFs) for spot Ethereum trading, leading to expectations of a future market rally.
The exact reason behind the sudden surge in ONDO’s value is not entirely clear, but it is possible that the platform’s partnerships with major financial institutions like BlackRock may have influenced investor sentiment. In March, Ondo Finance transferred $95 million of its assets to BlackRock’s tokenized fund, BUIDL, in order to facilitate instant settlements for its U.S. Treasury-backed token, OUSG. While this specific transaction may not have directly caused the recent price movement of ONDO, the association with BlackRock seems to have increased confidence among ONDO holders regarding the token’s future prospects.
BlackRock, known for its dominant position in the spot crypto ETF market, holds the largest share of spot Bitcoin ETFs, even surpassing Micro Strategy in Bitcoin accumulation for its iShares Bitcoin ETF (IBIT) in a short period of time. BlackRock has also filed an application for a Spot Ethereum ETF, which was recently approved by the U.S. financial watchdog.
The approval of spot Ethereum ETFs by the SEC has led to speculation within the crypto community about the possibility of more ETFs focused on altcoins, particularly those linked to BlackRock. However, there have been no indications from the SEC regarding the approval of any altcoin ETFs so far.
Nevertheless, Bloomberg analyst James Seyffart has already suggested the possibility of other tokens, such as Solana, eventually obtaining their own spot ETFs. According to Seyffart, the selection of altcoins for ETFs will depend on investor demand, although he believes that it might take several years for a spot Solana ETF to materialize, as the SEC has not shown the same level of interest in Solana as it has in Ethereum.
In conclusion, the approval of spot Ethereum ETFs by the SEC has raised expectations within the crypto community, and it remains to be seen if this will have a positive impact on the prices of cryptocurrencies like Ethereum.
