21Shares has formally submitted an application for an ONDO exchange-traded fund (ETF), seeking to connect real-world asset tokenization with institutional capital by passively tracking the value of ONDO tokens through cold storage. The proposed ETF will utilize the CME CF Ondo Finance-Dollar Reference Rate benchmark and operates outside Investment Company Act of 1940 regulations, significantly reducing operational hurdles.
Notably, Ondo Finance has emerged as a key player in merging traditional finance with decentralized finance (DeFi), highlighted by its acquisition of Oasis Pro and a $250 million tokenized asset collaboration with Pantera Capital. Growing institutional adoption is evidenced by entities including World Liberty Financial incorporating ONDO tokens into DeFi treasury strategies, signaling heightened confidence in its real-world utility.
Bloomberg ETF analyst James Seyffart confirmed the SEC filing, emphasizing 21Shares’ proactive regulatory engagement that could establish a blueprint for future tokenized asset ETFs. By employing a passive tracking model, the ETF aims to deliver transparent and secure exposure to ONDO, potentially accelerating market participation and liquidity expansion for tokenized assets.