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21Shares has taken a significant step by filing for a US SEC-approved ETF that will track Ondo Finance’s native token, ONDO, marking a pivotal development in DeFi asset accessibility.
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This ETF aims to provide investors with direct exposure to ONDO through a regulated, passive investment vehicle, leveraging Coinbase custody and the CME CF Ondo Finance-Dollar Reference Rate for accurate pricing.
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According to COINOTAG, this move underscores growing institutional interest in tokenized real-world assets and the expanding role of DeFi protocols in traditional financial markets.
21Shares files for Ondo Finance ETF with SEC, offering regulated exposure to ONDO token and advancing institutional adoption of DeFi and tokenized real-world assets.
21Shares’ Ondo Trust ETF: Bridging DeFi and Traditional Finance
21Shares’ preliminary prospectus filing with the US Securities and Exchange Commission introduces the 21Shares Ondo Trust, an exchange-traded fund designed to track the spot price of the ONDO token. This ETF represents a strategic effort to bridge decentralized finance (DeFi) with traditional investment frameworks by offering a regulated, passive vehicle for exposure to Ondo Finance’s native asset. The ETF will hold ONDO tokens directly, with custody services provided by Coinbase, ensuring institutional-grade security and compliance. Utilizing the CME CF Ondo Finance-Dollar Reference Rate as its pricing benchmark, the fund aims to deliver transparent and reliable valuation for investors.
ETF Structure and Market Implications
The ETF will operate as a passive investment vehicle without engaging in speculation or leverage, allowing authorized participants to create or redeem shares either in cash or in-kind. This structure is designed to maintain liquidity and minimize tracking error, which is critical for investor confidence in a nascent asset class. The introduction of this ETF could catalyze broader adoption of ONDO tokens by providing a familiar investment format for institutional and retail investors alike, potentially increasing market liquidity and price discovery efficiency.
Ondo Finance’s Strategic Position in Institutional RWA Tokenization
Ondo Finance is positioning itself at the forefront of the institutional-grade tokenization of real-world assets (RWAs) through its layer-1 proof-of-stake blockchain, Ondo Chain. The platform specializes in creating tokenized representations of financial instruments such as private credit and US Treasurys, targeting Wall Street firms and institutional investors. With a market capitalization of approximately $3.5 billion and a circulating supply of 3.1 billion ONDO tokens, the protocol has demonstrated significant growth potential despite recent price corrections.
Partnerships and Regulatory Milestones
In a notable move to enhance regulatory compliance and market reach, Ondo Finance acquired Oasis Pro, an SEC-registered broker-dealer and Alternative Trading System (ATS). This acquisition enables Ondo to facilitate tokenized securities trading and ownership management within a regulated framework. Oasis Pro’s registration with the Financial Industry Regulatory Authority (FINRA) since 2020 further solidifies Ondo’s commitment to integrating DeFi innovations with established financial regulations. Additionally, the partnership with Pantera Capital signals strong institutional backing and strategic alignment toward expanding tokenized asset offerings.
Market Trends: Surge in Tokenized Real-World Assets
The value of tokenized real-world assets on blockchain networks has surged dramatically, reaching nearly $25 billion in 2025—a 58% increase year-to-date, according to data from RWA.xyz. Ethereum remains the dominant platform for RWA tokenization, capturing 55% of the market share. This growth reflects increasing investor appetite for blockchain-based exposure to traditionally illiquid assets, driven by enhanced transparency, fractional ownership, and efficiency gains.
Implications for DeFi and Institutional Investors
This surge in RWA tokenization underscores a broader trend of convergence between decentralized finance and traditional capital markets. Ondo Finance’s ETF filing and its institutional-grade blockchain infrastructure position it to capitalize on this momentum. By offering regulated, accessible investment vehicles like the 21Shares Ondo Trust, the platform is facilitating a new era of financial innovation that could reshape asset management and investment strategies.
Conclusion
21Shares’ SEC filing for an ETF tracking the ONDO token marks a significant milestone in the integration of DeFi assets into mainstream financial markets. Ondo Finance’s focus on institutional-grade tokenization of real-world assets, supported by strategic acquisitions and partnerships, positions it as a key player in this evolving landscape. As tokenized RWAs continue to gain traction, investors can expect increased opportunities for diversified, blockchain-based exposure within regulated frameworks. This development not only enhances market accessibility but also signals growing institutional confidence in the future of DeFi and asset tokenization.
