Number of unique owners of exchange-traded funds (ETFs) rose by 11,803% year-on-year (YoY) to an all-time high (ATH) on May 20.
As of press time, the number of tokenized ETF holders was about 44,400, compared to 373 a year ago, according to the site. Metrics from Token station Analyzed by Feinbold. As a result, unique addresses containing ETF tokens rose approximately 119x year over year.
As the number of investors in tokenized ETFs increased, the sector grew in tandem, reaching a market capitalization of approximately $437.6 million at press time. The most popular token ETFs among these users over the past year have been SPYx (SPDR S&P 500 ETF) and QQQx (Invesco QQQ Trust) with a market share of 49.3% and 18.7%, respectively.
It is worth noting that Solana (SolThe network accounts for the lion’s share of the sector, which is currently estimated at about 67.2%. Meanwhile, the BNB chain and Ethereum (Ethereum) The network represents approximately 17.7% and 10.3%, respectively, of the total tokenized ETFs.
Why is the tokenized ETF space swelling?
The tokenized ETF space has exploded over the past year, driven by 24/7 global trading, ultra-low costs in decentralized finance (DeFi), regulatory clarity, and self-custody. With traditional tokenized ETFs on DeFi, more users can seamlessly trade and earn returns not available on traditional platforms.
It is worth noting that this sector provides cryptocurrency users with more options to diversify their portfolios with less volatile assets, without trading restrictions. Moreover, unlike DeFi protocols, which operate continuously and are open to anyone, traditional stock markets close at night and on weekends and often restrict retail access due to geographical boundaries.
The growth of this space has been greatly influenced by regulatory clarity in the United States. Under Chairman Paul Atkins, the US Securities and Exchange Commission (SEC) approved the listing of token assets.
