21Shares has formally submitted an S-1 application to the U.S. Securities and Exchange Commission seeking approval for a physically-backed ONDO exchange-traded fund (ETF). Filed on July 23, 2025, the proposed 21Shares Ondo Trust ETF will track the CME CF Ondo Finance-Dollar Reference Rate using ONDO tokens held in cold storage custody by Coinbase.
The ETF structure is designed to provide direct exposure to ONDO without derivatives, replicating its dollar value by aggregating executed trades from major exchanges. This passive approach reduces operational complexity while leveraging regulated crypto infrastructure for asset security. Notably, the fund is not registered under the Investment Company Act of 1940, excluding associated investor protections.
This initiative aligns with Ondo Finance's expansion strategy following its acquisition of regulated broker Oasis Pro and its $250 million tokenized real-world assets (RWA) partnership with Pantera Capital. The ETF aims to integrate tokenized U.S. Treasuries and money markets into traditional capital markets, potentially increasing total value locked in Ondo's DeFi ecosystem.
Market reaction was immediately positive, with ONDO's price rising 1.10% to $1.08 and 24-hour trading volume surging 5.29% to $349.6 million post-announcement. Institutional adoption signals strengthened as World Liberty Financial added ONDO to its multi-asset DeFi treasury.
