21Shares has filed with the SEC for a cash ETF based on ONDO, the hottest institutional token in the RWA tokenization space. The proposal has boosted the cryptocurrency's price while cementing its role in the digitization of real assets.
21Shares, one of the most active issuers of regulated crypto products, has filed a formal application with the U.S. Securities and Exchange Commission (SEC) to launch the 21Shares Ondo Trust", an exchange-traded fund (ETF) that will replicate the value of the ONDO token. Unlike other derivatives-based products, this ETF will be physical: will directly purchase and hold ONDO tokens, without leverage or synthetic instruments.
Custody will be handled by regulated entities, which will store the assets in segregated, cold storage accounts, ensuring institutional security. The fund will track the CME CF Ondo Finance-Dollar Reference Rate index, designed to reflect the average price of the token on major exchanges.
The proposal, according to the firm, seeks to offer direct exposure to ONDO and its registration with the SEC marks a key step toward the institutionalization of this digital asset.
BUY ONDO ON BIT2MEONDO: the infrastructure that connects TradFi and DeFi
The ONDO token is the native asset of Ondo Finance, a platform that powers the tokenization of real-world assets (RWA). Its ecosystem revolves around Ondo Chain, a Layer 1 blockchain specifically designed to integrate traditional financial instruments, such as bonds, stocks, and funds, into the blockchain universe.
Ondo Chain differentiates itself from other blockchains due to its hybrid and robust approach. Instead of relying solely on common mechanisms, combines institutional validators, integrated oracles and omnichain bridgesAll of this not only helps issue and safeguard tokenized assets but also ensures smooth and secure distribution. For example, authorized validators play a crucial role in preventing practices like front-running and ensuring transactions are executed optimally. It also enables staking with real-world assets like tokenized bonds, an innovative way to secure the network and provide tangible backing.
In terms of interoperability, Ondo Chain uses Native bridges that connect public and private blockchains, facilitating frictionless communication between different ecosystems and digital environments. Simultaneously, on-chain oracles monitor and verify prices and reservations in real time to maintain transparency and accuracy at all times.
Ondo's proposed model has not gone unnoticed, as key market players such as World Liberty Financial, the platform known for its ties to Donald Trump, have expressed their confidence by acquiring over 340.000 ONDO tokens in December. Furthermore, Ondo Finance took an important step earlier this month by acquiring Oasis Pro, a regulated broker-dealer registered with the SEC and member of FINRA, thus consolidating its strategy to take tokenized securities to a new level of regulation and professionalism.
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ONDO price on the rise
21Shares' filing for the ONDO ETF had an immediate effect on the market, with the token's price rising more than 10% in 24 hours, reaching $1,16 per unit.
However, at the time of writing, ONDO's price has corrected slightly, trading near $1,08, while its market capitalization exceeds $3.400 billion. Trading volume also surged more than 15%, surpassing $400 million per day at press time. These metrics reflect renewed institutional and retail interest in ONDO.
Source: CoinGecko
Analysts such as James Seyffart and Eric Balchunas of Bloomberg Intelligence have continued A close look at this new crypto ETF filing. Balchunas commented that the pace of current applications and developments regarding cryptocurrency products sometimes exceeds the capacity for immediate analysis. Both analysts reflect on the accelerated progress this emerging market is experiencing toward mainstream integration. Furthermore, both also noted that altcoin-based ETFs have a high probability of approval this year, especially if they meet custody and transparency standards similar to those of Bitcoin and Ethereum.
Institutional tokenization: a growing trend
The total value of real-world assets tokenized on the blockchain exceeds $ 25.000 millones, with growth of more than 50% so far this year. Ethereum leads the sector, especially in Treasury bonds and private credit, but Ondo is seeking to position itself as the preferred infrastructure for institutions.
21Shares' proposal not only validates Ondo Finance's model, but could pave the way for a new generation of token-based ETFs geared toward regulated markets. If the SEC approves the fund, ONDO would become the first institutionally backed RWA token to be publicly traded, setting a precedent for other similar projects.
Furthermore, the ETF would allow pension funds, financial advisors, and regulated platforms to access tokenized assets without legal or technical friction, potentially accelerating crypto adoption in traditionally conservative segments.
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