A significant milestone in the history of crypto ETFs has been reached as 21Shares files a first draft prospectus with the United States Securities and Exchange Commission (SEC).
The aim is to launch a new exchange-traded fund based on Ondo Finance’s native token, ONDO.
Its named “21Shares Ondo Trust,” the fund aims to offer access to the ONDO spot price through holding the token outright and tracking the CME CF Ondo Finance-Dollar Reference Rate.
The ETF will be a passive fund with no leveraged or speculative characteristics, and Coinbase will serve as token custodian.
Approved participants then proceed to create or redeem shares in cash or in-kind, imposing its viability for institutional investors seeking secure and convenient digital asset exposure.
ONDO Token Price Rises Over 7% With This Week’s ETF Frenzy
Following news of the ETF filing, Ondo (ONDO) token price rose 7.14% over 24 hours to $1.12 with a significant 24-hour trading volume of $587.8 million.
The week-over-week growth is now 19.49%, a sign of growing investor confidence in the token.
With a circulating supply of 3.2 billion ONDO, the token is currently market capitalized at $3.52 billion.
The ETF filing reflects increasing institutional interest in blockchain solutions backed by real-world assets (RWAs), and the performance of ONDO is a reflection that investors think this is a turning point for mainstream adoption.
Institutional Attraction Exacerbated by Ondo’s DeFi and RWA Focus
ONDO operates on the Ondo Chain, a layer-1 proof-of-stake blockchain specifically designed to facilitate institutional-quality financial markets and tokenized real-world assets.
As DeFi continues to converge with traditional finance, ONDO’s strategic position within the tokenized assets segment offers a compelling narrative to institutions looking to close these gaps.
The suggested trust structure by 21Shares is part of a broader shift towards making specialized digital assets regulated and transparent financial products for institutional-scale investors.
The recent move by 21Shares reaffirms it as a first-mover in crypto ETFs and makes a portion of the market available that had previously been too risky or beyond reach.
Also Read: IRS Tightens Crypto Compliance, 1099-DA Forms Required For 2025 Filings, Ahead Of Trump’s Oath Day
Trump-Backed World Liberty Adds $ONDO to Its Holdings
Adding fuel to the speculation, the Trump family-backed World Liberty Financial has shown a positive outlook towards Ondo Finance.
In December 2024, the platform purchased $250,000 worth of ONDO tokens, and currently holds approximately 342,000 ONDO, now valued at $383,000.
While this represents only 0.2% of its $208 million portfolio, which is primarily comprised of wrapped Ether, stablecoins, and Bitcoin, adding ONDO introduces a political and public profile dimension to the token.
While the stake is small, association with a prominent name can attract not only media attention but also the attention of retail investors and financial groups on the right.
Also Read: Polymarket Bets On XRP ETF Approval In 2025 With 82% Probability
Wider ETF News Fuels Hope in Crypto Markets
The ONDO ETF application is part of a wider wave of crypto ETF activity that’s inspiring renewed hope across the digital asset landscape.
In January, Canary Capital’s proposed Litecoin ETF is reportedly imminent, triggering a 16% price surge in LTC.
Similarly, last November, Hedera (HBAR) saw its price surge by 25% following Canary’s follow-up submission of another spot ETF tied to HBAR.
The shared momentum suggests a growing interest among regulators and issuers to move more crypto-based investment products into the mainstream market.
With sentiment in the crypto markets turning bullish, innovations such as the 21Shares Ondo Trust ETF could signal increased institutional acceptance and mainstreaming of specialist digital asset tokens, like ONDO.