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Ondo Finance, a company backed by Pantera Capital, reaches an all-time high
Ondo Finance’s ONDO gained nearly 20% on news that the US securities regulator has approved Ethereum spot exchange-traded funds.
Ondo Financea tokenized platform for real-world assets (RWA) powered by Panther Capital, witnessed a notable surge in its ONDO token, which rose nearly 20% to hit an all-time high of $1.16. This spike came on the heels of the US Securities and Exchange Commission (SEC) endorsing spot Ethereum exchange-traded funds (ETFs), fueling market expectations for a future rally.
ONDO price in USD | Source: CoinMarketCap
The precise reason behind ONDO’s rapid growth remains somewhat ambiguous, but the platform’s strategic partnerships with major financial institutions, such as Black rockmay have influenced investor sentiment.
At the end of March, Ondo Finance transferred $95 million of its assets to BlackRock’s tokenized fund, BUIDL, to facilitate instant payments for its US Treasury-backed token, OUSG. While it is unlikely that this specific transaction directly triggered ONDO’s recent price movement, the association with BlackRock appears to have boosted confidence among ONDO holders regarding the token’s prospects.
BlackRock, known as the dominant force in the spot cryptocurrency ETF market, holds the largest share of spot Bitcoin ETFs, even surpassing Micro Strategy in accumulating Bitcoin for its iShares Bitcoin ETF (IBIT) in a short amount of time. BlackRock also submitted an application for the Spot Ethereum ETF, which was recently approved by the US Financial Regulator.
The SEC’s approval of Ethereum spot ETFs has fueled speculation within the crypto community about the potential for more altcoin-focused ETFs, particularly for BlackRock-linked tokens. However, so far there has been no indication from the SEC regarding the approval of any spot ETFs on altcoins.
However, Bloomberg analyst James Seyffart has already suggested the possibility that other tokens, such as Solana, may eventually secure their own spot ETFs. According to Seyffart, the selection of altcoins for ETFs will depend on investor demand, although he predicts that a spot ETF on Solana may not materialize for several years, given that the SEC is “not circling around SOL’s status as if it had ETH” .