Asset manager 21Shares has submitted a filing with the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) directly tracking the ONDO token. The proposed 21Shares Ondo Trust ETF seeks to provide regulated exposure to the native token of Ondo Finance, positioning itself as a bridge between decentralized finance (DeFi) and traditional investment markets.
The preliminary prospectus indicates the ETF will hold ONDO tokens directly through regulated custodians and utilize the CME CF Ondo Finance-Dollar Reference Rate for liquidity provision and value tracking. This approach aims to offer institutional investors a compliant pathway to access tokenized asset markets.
Ondo Finance, boasting a market capitalization of approximately $3.5 billion, specializes in tokenizing real-world assets (RWAs), particularly U.S. Treasurys. The company recently enhanced its regulatory compliance framework through the acquisition of Oasis Pro, an SEC-registered broker-dealer, accelerating its objective of integrating tokenization solutions with conventional finance.
The filing emerges amid explosive growth in the tokenized RWA sector, now valued at nearly $25 billion. Ethereum dominates this market, hosting roughly 55% of tokenized assets, reflecting intensifying institutional interest in blockchain-based representations of traditional investments.
This initiative underscores the accelerating convergence between decentralized finance and established financial systems. By introducing regulated investment vehicles like the ONDO ETF, 21Shares and Ondo Finance aim to facilitate broader institutional adoption of tokenized assets while expanding their utility within mainstream finance.