Ondo Finance’s ONDO token experienced a significant increase of almost 20% following reports of approval from the U.S. securities regulator for spot Ethereum exchange-traded funds. The platform, supported by Pantera Capital, saw its ONDO token reach a record high of $1.16 amidst the news. Market expectations were fueled by the approval from the U.S. Securities and Exchange Commission (SEC) for spot Ethereum ETFs, leading to a surge in ONDO’s price.
While the exact reason for ONDO’s rapid growth remains unclear, its partnerships with major financial institutions like BlackRock may have played a role in influencing investor sentiment. In a recent move, Ondo Finance transferred $95 million of assets to BlackRock’s tokenized fund, BUIDL, to enable instant settlements for its U.S. Treasury-backed token, OUSG. Although this specific transaction may not have directly triggered ONDO’s price movement, the association with BlackRock has instilled confidence among ONDO holders regarding the token’s future prospects.
BlackRock, a key player in the spot crypto ETF market, holds a significant portion of spot Bitcoin ETFs and has even surpassed Micro Strategy in Bitcoin accumulation for its iShares Bitcoin ETF (IBIT) in a short period. BlackRock’s application for a Spot Ethereum ETF was recently approved by the SEC, sparking speculation within the crypto community about the potential for more altcoin-focused ETFs, particularly those associated with BlackRock. However, there has been no indication from the SEC regarding the approval of any spot altcoin ETFs at this time.
Despite this, Bloomberg analyst James Seyffart has hinted at the possibility of other tokens like Solana securing their own spot ETFs in the future. According to Seyffart, the selection of altcoins for ETFs will depend on investor demand, though he believes a spot Solana ETF may not materialize for several years due to the SEC’s cautious approach towards Solana compared to Ethereum.
The approval of spot Ethereum ETFs by the SEC is expected to have a positive impact on prices, as suggested by QCP Capital.