21Shares Files SEC Application for ONDO ETF, Advancing Tokenized RWA Adoption

On July 23, 21Shares submitted an S-1 registration statement to the U.S. SEC for the “21Shares Ondo Trust,” a proposed ETF designed to track the performance of ONDO, the native token of Ondo Finance. The fund intends to directly hold ONDO tokens, with Coinbase Custody providing secure storage. It will benchmark the CME CF Ondo Finance-Dollar Reference Rate.

Following the filing, ONDO’s price jumped from $1.05 to $1.16, marking a 10.48% surge within a short time frame. Such an intraday surge is rare for ONDO, underscoring robust investor conviction and immediate buy-side demand following the ETF announcement. The token’s market capitalization climbed to approximately $34.4 billion, with 24-hour trading volume rising 14.68% to $421.78 million.

The ETF is structured as a passive fund and does not utilize leverage or derivatives. It is currently under SEC review, a process that includes public commentary and possible amendments. A launch date has not yet been announced.

Strategic Growth and RWA Leadership

Ondo Finance has cemented its position as a market leader in tokenized real-world assets (RWAs), with $1.4 billion in total value locked — accounting for over 11.67% of the tokenized U.S. Treasuries market, which now exceeds $12.9 billion, according to data from rwa.xyz.

The platform offers a comprehensive RWA product suite that includes tokenized bonds, yield-generating stablecoins, custody infrastructure, and its own Ondo Chain. This breadth positions Ondo to capitalize on the growing institutional demand at the intersection of DeFi and TradFi.

Political attention around Ondo has grown as well. In February 2025, World Liberty Financial, a DeFi initiative reportedly backed by the Trump family, added 342,000 ONDO (worth approximately $470,000) to its “strategic reserve” via CoW Protocol. Although the position is relatively small, the move has drawn attention to ONDO’s growing presence among politically connected investors.

Regulatory and Market Implications

The filing arrives amid a broader surge in institutional interest in tokenized RWAs. As DeFi infrastructure matures and traditional finance continues exploring on-chain opportunities, the ONDO ETF could serve as a bellwether for the next generation of blockchain-native investment products.

Observers note that the SEC’s decision on the ETF could influence the pace of regulated crypto adoption. The filing reflects DeFi’s ongoing evolution toward structures that align with institutional compliance requirements.

Since the announcement, ONDO’s 24-hour trading volume has risen by 14.68% to approximately $421.78 million, signaling strong investor interest and growing market confidence in the fund’s potential. As 21Shares continues to develop regulated pathways for digital asset exposure, the ONDO ETF may help close the gap between Wall Street and blockchain finance.