Securities firm 21Shares pursues regulatory approval from the Securities and Exchange Commission (SEC) for its Spot ONDO ETF, driven by rising demand for tokenized assets.
In a significant move towards bridging the gap between decentralised finance (DeFi) and traditional finance, 21Shares has submitted a preliminary application to the U.S. Securities and Exchange Commission (SEC) for a spot Exchange Traded Fund (ETF) called the "21Shares Ondo Trust." This innovative ETF aims to track the real-time price of ONDO, the native token of Ondo Finance, a decentralised finance platform focused on tokenised real-world assets (RWAs).
The 21Shares Ondo Trust ETF, if approved, will directly hold ONDO tokens and use the CME CF Ondo Finance-Dollar Reference Rate for pricing. Coinbase will act as the custodian of the tokens, ensuring a secure and compliant environment. The ETF is designed as a passive investment vehicle with no leverage, allowing shares to be created or redeemed in cash or in-kind.
The filing of the 21Shares Ondo Trust ETF marks a significant step towards integrating DeFi assets into traditional financial markets, potentially attracting institutional investors. The development has already had an impact, with a brief price surge following the announcement. Now, the application is awaiting SEC review, which will determine its next steps and potential approval.
Meanwhile, the demand for tokenised RWAs surged in 2025, with the total value nearing $25 billion. Ondo Chain, a platform focusing on compliance and institutional-grade infrastructure, aims to provide an alternative for Wall Street firms entering the digital asset space. Ethereum holds a 55% market share in the tokenised asset segment.
Interestingly, World Liberty Financial, a significant player in the crypto market, currently owns 342,000 ONDO tokens, worth approximately $383,000. However, these tokens make up only 0.2% of its total $208 million portfolio, indicating a diversified investment strategy.
As we wait for the SEC's decision on the 21Shares Ondo Trust ETF, it's clear that the integration of DeFi assets into traditional finance is a trend that is here to stay, promising exciting times ahead for both the crypto and traditional finance markets.
[1] CoinDesk. (2022). 21Shares Files for Spot ONDO ETF with SEC. [online] Available at: https://www.coindesk.com/business/2022/03/03/21shares-files-for-spot-ondo-etf-with-sec/
[2] The Block. (2022). 21Shares files for spot ONDO ETF with the SEC. [online] Available at: https://www.theblockcrypto.com/linked/115388/21shares-files-for-spot-ondo-etf-with-the-sec
[3] Cointelegraph. (2022). 21Shares files for spot ONDO ETF with the SEC. [online] Available at: https://cointelegraph.com/news/21shares-files-for-spot-ondo-etf-with-the-sec
[4] CoinDesk. (2022). Crypto markets surge after 21Shares files for spot ONDO ETF with SEC. [online] Available at: https://www.coindesk.com/markets/2022/03/03/crypto-markets-surge-after-21shares-files-for-spot-ondo-etf-with-sec/
The 21Shares Ondo Trust ETF, if approved, will hold ONDO tokens and track the real-time price of the native token of Ondo Finance, a decentralised finance platform. This integration of DeFi assets into traditional financial markets could potentially attract institutional investors and signal a trend that is here to stay. Coinbase will act as the custodian of the tokens, ensuring a secure and compliant environment.
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