21Shares’ proposed ONDO ETF will hold cold stored tokens, tracking ONDO’s value through a regulated, passive investment structure.
The ETF follows Ondo Finance’s $250M tokenized asset push and Oasis Pro acquisition, suggesting stronger U.S. market integration.
If approved, the ONDO ETF may pioneer RWA focused crypto ETFs, merging DeFi utility with institutional investor access.
Swiss asset manager 21Shares has officially filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to launch a spot Exchange Traded Fund (ETF) backed by ONDO, the native token of Ondo Finance.
The application, submitted on July 23, 2025, outlines plans to list the ETF on a U.S. securities exchange. If approved, this will be the first U.S. listed ETF tied to a real world asset focused cryptocurrency, representing a notable step toward integrating decentralized finance with traditional markets.
ONDO ETF to Track Dollar Value Using Cold Stored Tokens
According to the filing, the proposed ETF will passively track the CME CF Ondo Finance-Dollar Reference Rate. It will achieve this by holding actual ONDO tokens in cold storage, not through derivatives.
Coinbase Custody will manage the secure storage of the tokens, enabling regulated separation of investor assets. The ETF structure aims to replicate ONDO’s dollar value transparently, with the benchmark aggregating executed ONDO trades from key trading platforms.
Notably, the fund is not registered under the Investment Company Act of 1940. Therefore, it will not carry the investor protections outlined in that regulatory framework. However, the passive design simplifies management and reduces operational complexity.
This aligns with 21Shares’ broader goal to offer traditional exposure to tokenized real-world assets through regulated financial products.
Ondo’s Growing Institutional Engagement
The ETF filing follows Ondo Finance’s recent acquisition agreement with Oasis Pro, a regulated U.S. broker-dealer. This move strengthens Ondo’s compliance footprint and enhances its operational scale in the American market.
Additionally, Ondo has partnered with Pantera Capital on a $250 million initiative to invest in tokenized U.S. Treasuries and other yield-bearing assets. These developments further highlight Ondo’s growing role in bringing blockchain-based assets to regulated platforms.
As part of this strategy, Ondo has already tokenized over $500 million in real-world assets, including U.S. Treasuries. Its infrastructure allows both institutional and retail users to access these instruments directly on-chain. The ETF would introduce another entry point for investors, leveraging familiar mechanisms within the capital markets to interact with blockchain-native assets.
ONDO’s Role in DeFi
World Liberty Financial has reportedly accumulated ONDO tokens for its multi-asset decentralized finance treasury. This marks an example of growing institutional use of the token within compliant financial strategies.
Although ONDO is not registered as a security, its increasing presence in regulated structures has gained attention. Bloomberg ETF analyst James Seyffart confirmed the ETF filing, noting 21Shares submitted the required documents to the SEC on July 23.
The proposed ETF shows 21Shares’ intent to anchor ONDO within regulated investment products. It also extends Ondo Finance’s infrastructure to new participants by linking tokenized U.S. Treasuries with broader financial distribution networks. If approved, the ONDO ETF could establish a precedent for future RWA backed ETFs in regulated markets.
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