Spot ONDO ETF Incoming? 21Shares Moves First in the Race to Tokenized Finance Exposure

Exchange-traded product provider 21Shares is looking to add another crypto asset to its ETF roster, this time with a focus on real-world asset tokenization.

On Tuesday, the firm filed a preliminary prospectus with the U.S. Securities and Exchange Commission (SEC) for the “21Shares Ondo Trust,” which aims to directly hold ONDO, the native token of the Ondo Finance ecosystem.

Token details, ETF structure, and custody plans

According to the filing, the proposed ETF will track the CME CF Ondo Finance-Dollar Reference Rate and offer investors exposure to the spot price of ONDO without needing to directly hold the token themselves.

Coinbase is set to serve as the custodian for the fund’s crypto holdings.

The fund is designed as a passive investment vehicle, meaning no leverage, derivatives, or speculative strategies. Instead, authorized participants will be able to create and redeem shares in cash or in-kind.

ONDO serves as the utility token for Ondo Chain, a layer-1 proof-of-stake blockchain launched earlier this year with a specific focus on institutional finance and tokenized real-world assets (RWAs).

As of now, ONDO carries a market cap of $3.5 billion and is trading at around $1.11, about 47% below its all-time high of $2.14 in December, per CoinGecko data.

Institutional activity and ondo’s expanding ecosystem

Institutional interest in Ondo has also started picking up. World Liberty Financial, a DeFi platform with ties to the Trump family, disclosed it holds 342,000 ONDO tokens (worth approximately $383,000), though that accounts for just a fraction of its broader $208 million portfolio.

The bulk of its assets remain in wrapped ETH, wrapped BTC, and stablecoins.

Meanwhile, Ondo Finance recently acquired Oasis Pro, a U.S.-regulated broker-dealer and Alternative Trading System, with plans to develop tokenized securities in collaboration with Pantera Capital.

Oasis Pro’s registration with the SEC and FINRA opens the door for Ondo to operate within existing securities frameworks.

The ETF filing from 21Shares signals continued interest in providing regulated pathways for investors to gain exposure to emerging crypto sectors, this time with a tilt toward tokenized finance.

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