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21Shares has filed for a new ETF with the US SEC that will track the price performance of ONDO, the native token of Ondo Finance.
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The proposed ETF will operate as a passive investment vehicle, avoiding leverage, derivatives, and speculative trading strategies.
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ONDO has experienced a remarkable 64.7% surge in market capitalization over the past month, outpacing the broader crypto market.
21Shares files for ONDO ETF with SEC, highlighting ONDO’s strong market growth and passive investment approach in the evolving crypto ETF landscape.
21Shares Files for ONDO ETF, Marking a New Chapter for Crypto Asset Investment
On July 22, 2025, 21Shares submitted a Form S-1 registration statement to the US Securities and Exchange Commission (SEC) for the 21Shares Ondo Trust ETF. This fund is designed to track the price performance of ONDO, the native token of Ondo Finance, a decentralized finance platform specializing in tokenizing real-world assets (RWA). The filing represents a significant development in the crypto ETF space, as it aims to provide investors with direct exposure to ONDO through a regulated investment vehicle.
The ETF will be structured as a passive investment vehicle, explicitly avoiding the use of leverage, derivatives, or speculative trading. According to the filing, the fund will hold ONDO tokens directly, with Coinbase Custody Trust Company appointed as the custodian. The ETF will track ONDO prices using the CME CF Ondo Finance-Dollar Reference Rate, ensuring transparent and reliable pricing for investors.
Passive Investment Strategy and Market Implications
The passive nature of the ETF means it will mirror ONDO’s price movements without engaging in active trading strategies aimed at profit maximization. The filing states, “This means the Sponsor does not speculatively sell ONDO at times when its price is high or speculatively acquire ONDO at low prices in the expectation of future price increases.” This approach aligns with regulatory expectations and provides a straightforward investment vehicle for institutional and retail investors seeking exposure to ONDO without the complexities of active management.
Market analysts have expressed optimism about the filing’s potential impact. Crypto analyst Marty Party highlighted that this could be the first ERC-20-based spot ETF application, potentially paving the way for other non-L1 blockchain assets to gain ETF listings. Trader Jeff Cook described ONDO as the “next institutional darling,” suggesting that the ETF could attract significant institutional capital inflows, with early positioning by “smart money” investors.
ONDO’s Market Performance and Broader ETF Trends
ONDO’s price performance has been impressive, with a 64.7% increase in market capitalization over the past month, rising from approximately $2 billion to over $3.5 billion. At the time of writing, ONDO traded at $1.12, reflecting a 6.47% gain over the previous day and outperforming many other cryptocurrencies in the same period.
ONDO Price Performance. Source: COINOTAG
Alongside ONDO, 21Shares has filed ETF applications for other prominent altcoins, including Polkadot (DOT), XRP, Sui (SUI), and Solana (SOL). The growing number of ETF filings awaiting SEC approval underscores the increasing institutional interest in crypto assets and the evolving regulatory landscape. Bloomberg’s senior ETF analyst Eric Balchunas noted that the volume of filings is outpacing general market awareness, signaling rapid developments in crypto ETF offerings.
Future Outlook and Industry Impact
While certain details such as the listing exchange remain unspecified in the current filing, the submission itself is a milestone that could influence the broader adoption of crypto ETFs. By offering a regulated, passive investment vehicle for ONDO, 21Shares is positioning itself at the forefront of integrating decentralized finance tokens into traditional investment frameworks.
Investors and market participants should monitor further developments, including SEC feedback and potential listing announcements, as these will shape the accessibility and liquidity of ONDO through the ETF. The filing also highlights the growing trend of tokenizing real-world assets within DeFi, which could drive increased institutional participation in this sector.
Conclusion
21Shares’ ETF filing for ONDO represents a pivotal step in bridging decentralized finance tokens with mainstream investment products. The passive ETF structure, combined with ONDO’s strong recent market performance, positions this offering as a potentially attractive option for investors seeking regulated exposure to innovative crypto assets. As the ETF landscape continues to evolve, 21Shares’ initiative may set a precedent for future ERC-20 token ETFs, fostering broader institutional adoption and market maturity.
