- 21Shares Ondo Trust files for ONDO-backed ETF with SEC approval.
- Ondo partners Pantera Capital, launching $250M fund for tokenized assets.
- Ondo ETF could turn crypto trend into serious mainstream asset class.
21Shares Ondo Trust has taken a bold step by filing a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). The trust is interested in creating an exchange-traded fund (ETF) secured with ONDO, which is the native token of the Ondo protocol. This was filed on Tuesday, as reported by the SEC.
Ondo Partners With Pantera for $250M Tokenized Assets Fund
The ONDO token belongs to Ondo Finance, a company. It is a decentralized finance (DeFi) system that was created in 2021 by Nathan Allman and Pinku Suran, former employees of Goldman Sachs who founded Ondo. The key objective of the platform is to introduce such real-world assets as the U.S. Treasury bonds and money market funds to the world of digital tokens. Through this, Ondo will aim at offering access to traditional financial products through the blockchain.
Ondo Finance recently hit the news by stating that it intends to purchase Oasis Pro. Oasis Pro is a regulated broker that will be used to empower Ondo in its operations in the United States. This transaction will also assist Ondo to adhere to even more regulatory requirements, which is relevant as the company expands. Besides, Ondo has partnered with Pantera Capital to present a $250 million initiative. The project will invest in tokenized real-world assets, demonstrating that large investors are willing to invest in Ondo Vision.
Ondo is looking to go even far with the new ETF proposal. The ONDO ETF might enable access to the market of tokenized assets for traditional investors more simply. Consequently, this decision might increase the amount of value locked in Ondo DeFi ecosystem.
However, there are challenges too. Although regulated crypto products, such as ONDO ETF, have been seen to open up the market to large companies, it might prove a barrier to small startups. Decentralization is a central idea of many Web3 startups; however, the high level of regulation may restrict the freedom of these startups. These new companies have a hard time balancing between innovation and regulation.
21Shares Ondo ETF Could Shift Crypto from Trend to Asset Class
Meanwhile, there is a significant turning point, and most experts think so. The introduction of crypto ETFs by more traditional financial institutions can lead to additional capital pouring in the crypto sphere. Industry analysts believe that this increasing regulatory clarity may stimulate more investors to have confidence in DeFi projects such as Ondo. Such trust may result in a boom of new investments in tokenized assets.
Thus, Ondo ETF by 21Shares is not a regular financial product. It is a change in the way old and new worlds of finance can collaborate. The ETF would transform the perception of crypto among investors in case it is approved. It demonstrates that cryptocurrencies are not a trend anymore. Rather, they are turning into a legitimate asset type that numerous investors and institutions are finding to be worthwhile to investigate.
Consequently, Ondo and other projects are promising in the future. The boundary between traditional finance and DeFi becomes even more blurred with additional large investors and better regulations. This ETF might be the start of an entirely new era in which digital assets and traditional markets will expand in parallel.
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