Asset manager 21Shares has filed a preliminary S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) directly tied to the ONDO token, the native cryptocurrency of the real-world asset (RWA) platform Ondo Finance. The proposed product, named the 21Shares Ondo Trust, is designed to be listed on Nasdaq.
The ETF is structured as a passive, spot vehicle that will hold ONDO tokens directly, offering investors exposure without the complexities of managing private keys or on-chain infrastructure. It will not employ leverage, derivatives, or yield-enhancing strategies. Coinbase Custody is designated as the custodian for the underlying tokens, and the fund's performance will be benchmarked against the CME CF Ondo Finance-Dollar Reference Rate. Share creation and redemption are planned to operate both in cash and in-kind, mirroring the structure of other approved spot crypto ETFs.
The filing is significant as it represents one of the first attempts to package exposure to an ERC-20 token whose primary use case is tokenized real-world assets—such as U.S. Treasuries and bonds—into a fully regulated U.S. ETF wrapper. This moves the regulatory conversation beyond pure crypto commodities like Bitcoin and into the realm of tokenized finance.
Bloomberg ETF analyst Eric Balchunas highlighted the filing on social media, noting the rarity of a new crypto asset breaking into institutional ETF discussions. He remarked that he had never heard of Ondo prior to the application, underscoring the project's sudden entry into mainstream institutional awareness.
Ondo Finance's background, having been founded by former Goldman Sachs executives, adds a traditional finance credibility that resonates with institutional allocators exploring tokenization. The project's political connections, including reported holdings by the Trump family-linked World Liberty Financial treasury, also add visibility amid a politically charged digital asset policy landscape.
If approved, the ETF would validate Ondo's positioning at the intersection of DeFi and traditional fixed-income markets and signal a potential broadening of the ETF gateway beyond Bitcoin and Ethereum toward tokenized representations of real-world finance. The regulatory review process is expected to be lengthy, involving scrutiny of liquidity, custody, and market integrity.
