21Shares has submitted an application for an ETF backed by the ONDO token from Ondo Finance. This event could have significant implications for the decentralized finance (DeFi) market.
What is the ONDO ETF?
21Shares has filed for an ETF that will track the ONDO token created by Ondo Finance. This ETF is planned to be physically backed, with custody provided by Coinbase to secure the assets. The application was submitted to the U.S. Securities and Exchange Commission (SEC) through an S-1 registration statement.
Market Reaction to the Application
Following the filing, the price of the ONDO token surged by 2.3%, indicating strong investor confidence in tokenized real-world assets. During this period, ONDO reached a price of $1.14, with a market cap of approximately $3.59 billion and a 24-hour trading volume of $376.6 million.
The Future of Tokenization in DeFi
According to research notes from the Coincu team, this move aligns with broader market trends focusing on asset tokenization and could significantly enhance accessibility and liquidity in global markets. Analysts believe that the approval of such ETFs could pave the way for more institutional investment in the DeFi space, leading to a more robust and mature market.
The filing for the ETF backed by the ONDO token may signify a new era for decentralized finance, opening opportunities for growth and integration of tokenized assets in the U.S. market.
