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SEC Backs 21Shares' Move to Launch ONDO ETF: A Step Towards Tokenized Finance

21Shares has formally submitted an application to the U.S. Securities and Exchange Commission (SEC) for the creation of the 21Shares Ondo Trust, an exchange-traded fund (ETF) that will directly hold ONDO tokens.

This ETF aims to track the price performance of ONDO, the native token of Ondo Finance, a platform pivotal in tokenizing real-world assets (RWAs).

The proposed vehicle is structured as a passive investment, meaning it will not engage in speculative trading but simply follow the price movements of ONDO.

Custody for the ONDO tokens will be managed by Coinbase Custody Trust Company, ensuring regulatory compliance and security.

The interest in the ETF is reflective of a broader trend toward integrating decentralized finance (DeFi) with traditional financial markets, as seen in increased investments in RWAs.

Furthermore, alongside the SEC filing, Binance US has started listing ONDO, adding to its visibility and market accessibility for retail investors.

This convergence of institutional demand and retail interest is expected to amplify ONDO’s market growth, evidenced by a recent 64.7% increase in its valuation over the past month.

Analysts speculate that once regulatory approval is obtained, it could pave the way for further institutional investments in cryptocurrency products.

The momentum surrounding this ETF filing signifies an important milestone for 21Shares as it seeks to capture a share of the institutional investor market for cryptos.

Ultimately, if the SEC grants approval, this could lead to a paradigm shift in how financial assets are tokenized and traded, marking a significant evolution in the crypto landscape.