Ondo Finance, supported by Pantera Capital, reaches record-breaking peak
Ondo Finance, a platform that tokenizes real-world assets and is supported by Pantera Capital, experienced a significant surge in its ONDO token, with its value skyrocketing by almost 20% to reach a record high of $1.16. This surge was triggered by the news that the U.S. Securities and Exchange Commission (SEC) had approved spot Ethereum exchange-traded funds (ETFs), leading to expectations of a future market rally.
The exact reason for the rapid increase in ONDO’s value remains somewhat unclear, but it is possible that the platform’s partnerships with major financial institutions, such as BlackRock, played a role in influencing 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 particular transaction may not have directly caused the recent price movement of ONDO, the association with BlackRock seems to have instilled confidence among ONDO holders about the token’s prospects.
BlackRock, a dominant player in the spot crypto ETF market, holds the largest share of spot Bitcoin ETFs, surpassing even MicroStrategy in terms of Bitcoin accumulation for its iShares Bitcoin ETF (IBIT). The company 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 sparked speculation within the crypto community about the possibility of more ETFs focused on altcoins, particularly tokens associated with BlackRock. However, there have been no indications from the SEC regarding the approval of any spot altcoin ETFs at this time.
Despite this, Bloomberg analyst James Seyffart has already suggested that other tokens, such as Solana, could eventually secure their own spot ETFs. According to Seyffart, the selection of altcoins for ETFs will depend on investor demand, although he predicts that it may be several years before a spot Solana ETF becomes a reality, as the SEC is not treating Solana’s status in the same way as it has treated Ethereum.
In conclusion, the approval of spot Ethereum ETFs by the SEC has the potential to boost prices in the market, according to QCP Capital.
