- 21Shares has filed with the SEC to launch the “21Shares Ondo Trust,” a new ETF that would directly hold ONDO tokens and track the CME CF Ondo Finance-Dollar Reference Rate
- The filing sparked a 6.4% surge in ONDO’s price, signaling strong market interest as investors eye the token’s potential for broader institutional adoption.
21Shares has filed a registration with the U.S. Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) based on the Ondo token. The proposed “21Shares Ondo Trust” would directly hold ONDO tokens and is designed to passively track the CME CF Ondo Finance-Dollar Reference Rate, a benchmark managed by CF Benchmarks Ltd.
The new listing has ignited a fresh wave of optimism in the crypto market. Notably, ONDO’s market price has skyrocketed almost 7% settling at the $1.10 level.
Unlike many synthetic or futures-based crypto ETFs, the 21Shares Ondo Trust aims to replicate the dollar value of ONDO without using leverage or derivatives. The ETF will be physically backed, with all ONDO tokens held in custody by Coinbase Custody Trust Company.
According to the filing, the assets will be stored in secure, segregated cold storage accounts to minimize risk of theft or loss, offering institutional-grade security.
Although no ticker or listing venue has been officially announced, shares of the ETF are expected to trade on a national exchange. If approved, this fund could offer traditional investors easier and safer exposure to ONDO without requiring them to interact with crypto wallets or exchanges directly.
However, the ETF does come with notable caveats. Since the 21Shares Ondo Trust is not registered under the Investment Company Act of 1940, it won’t provide certain investor protections typically afforded to mutual funds or traditional ETFs. Moreover, ONDO itself is not registered as a security, meaning the token’s volatility could pose risks to investors, and protections against sharp market swings are limited.
Despite these risks, the market reacted bullishly to the filing. the asset surged 6.4% within 24 hours of the announcement, climbing to $1.10. The token’s market capitalization jumped to $3.49 billion, with daily trading volumes exceeding $420 million, a strong signal of investor interest and increased liquidity.
This ETF filing follows a broader trend of traditional financial players moving into the crypto ETF space. Earlier, Donald Trump’s Truth Social also made headlines by filing for a “blue chip” crypto ETF including Bitcoin, Ethereum, Solana, XRP, and Cronos. The addition of the ETF spotlight suggests growing recognition of its utility and future potential within the decentralized finance (DeFi) ecosystem.
While the registration is still under SEC review and does not guarantee approval, 21Shares’ push into ONDO territory may mark a turning point for the token. If the fund gets the green light, the asset could join the ranks of institutional-grade crypto assets, setting the stage for broader adoption, and potentially, the next big crypto boom.
