The number of holders of tokenized exchange-trade funds (ETFs) rose 11,803% year-on-year (YoY) to an all-time high (ATH) on May 20.
As of press time, the number of tokenized ETF owners was about 44,400, from 373 a year ago, according to metrics from Token Terminal checked by Finbold. As a result, private equity holdings in index ETFs rose nearly 119-fold YoY.
With the increasing number of investors investing in tokenized ETFs, the sector has grown accordingly, reaching a market value of approximately $437.6 million at the time of publication. The most popular ETF among these users in the past year has been SPYx (SPDR S&P 500 ETFand QQQx (Invesco QQQ Trust’s opinion), with market shares of 49.3% and 18.7%, respectively.
In particular, Solana (SOL) networks account for the lion’s share of the sector, currently estimated at around 67.2%. Currently, the BNB chain is Ethereum (The price of ETH) networks account for approximately 17.7% and 10.3%, respectively, of index ETFs.
Why is the tokenized ETF space ballooning?
The token-based ETF space has soared in the past year, driven by 24/7 global trading, the lowest cost in Decentralized Finance (DeFi), regulatory clarity, and self-regulation. With traditional ETFs popularized on DeFi, many users can trade independently and get yields that are not available on traditional platforms.
Worth noting, this feature offers crypto users many ways to diversify their portfolios with volatile assets, without trading restrictions. In addition, unlike DeFi protocols, which work continuously and are open to everyone, financial markets are closed at night and on weekends and often prohibit purchases due to space limitations.
The development of the site has been greatly influenced by the clarity of the laws in the United States. Under the chairmanship of Paul Atkins, the US Securities and Exchange Commission (SEC) has approved a list of tokenized assets.
to
