21Shares has filed a preliminary application with the U.S. Securities and Exchange Commission to issue an ETF tracking tokens of the Ondo Finance DeFi platform.
This is an important step in expanding the cryptocurrency ETF market, making it easier for investors to access DeFi through traditional financial products.
MAIN CONTENT
21Shares registered an ETF tracking Ondo Finance DeFi tokens with the U.S. SEC.
ETFs are tools for simple and transparent investment in DeFi.
What progress has 21Shares made in the DeFi sector?
21Shares has just submitted an application for approval from the U.S. Securities and Exchange Commission (SEC) to develop an ETF based on Ondo Finance tokens, one of the prominent DeFi platforms today. This is a clear testament to the company's commitment to bridging traditional finance and DeFi.
Filing for the ETF helps investors access DeFi assets more easily without having to directly hold tokens, reducing personal wallet security risks and increasing asset liquidity.
What benefits do DeFi token tracking ETFs provide for investors?
First, ETFs help investors participate in DeFi conveniently, transparently, and legally compliant. Michael Lempres, former legal director at Coinbase, stated in 2023: 'ETFs based on DeFi tokens will drive growth and expand the DeFi market globally.'
ETFs play a crucial role in legitimizing and expanding cryptocurrency financial products, especially in the DeFi sector, by attracting institutional and retail investors.
Michael Lempres, Cryptocurrency Legal Expert, 2023
In particular, ETFs help mitigate the consequences of self-managing wallets and increase portfolio diversification with a more professional governance mechanism. According to the 2023 report from Arcane Research, cryptocurrency ETFs recorded a 40% growth in market capitalization, showing strong appeal from the market.
What does the filing for the Ondo Finance Token ETF reflect about the cryptocurrency market trends?
21Shares is gradually expanding its DeFi-related ETF product portfolio, a clear sign of the growing acceptance of traditional finance towards cryptocurrency and DeFi. According to data from PwC (2023), more than 35% of professional asset managers expect to increase investments in cryptocurrency ETF products in the next five years.
We are witnessing a phase of convergence between DeFi and traditional investment markets, opening up sustainable and safer investment opportunities for global investors.
Jane Fraser, CEO of a major financial corporation, April 2024
The Ondo Finance ETF marks a step forward in diversifying cryptocurrency investment products, providing a better experience with professional risk management, meeting the growing demand from the market.
What outstanding features do DeFi token tracking ETFs have?
ETF Products DeFi Platform Advantages Market Size 21Shares Ondo Finance ETF Ondo Finance Easy access to DeFi, high liquidity, SEC compliance Not yet announced VanEck DeFi ETF Multiple DeFi platforms Diverse tokens, low management fees, global reputation Over 500 million USD Grayscale DeFi Fund Major DeFi Professionally managed, high transparency 1 billion USD
Frequently Asked Questions
Who is 21Shares and why is this important?
21Shares is a reputable cryptocurrency ETF issuer committed to fostering the connection between traditional finance and DeFi, enhancing liquidity and investment safety.
Do DeFi token ETFs have any risks?
ETFs help mitigate wallet security risks but still face price volatility of the underlying tokens and regulatory impacts.
What kind of DeFi platform is Ondo Finance?
Ondo Finance stands out with advanced fundraising and liquidity management products, highly regarded by the community for its technology and transparency.
How does U.S. SEC approval of the ETF affect the market?
Approval will facilitate the growth of cryptocurrency ETFs, attracting capital from institutional investors and individual users globally.
How to invest in this ETF once approved?
Investors can buy ETFs through traditional stock exchanges or through authorized brokers.
Source: https://tintucbitcoin.com/ondo-token-nop-ho-so-etf-sec/
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