21Shares, a notable issuer of exchange-traded funds (ETFs), has recently filed a preliminary application with the US Securities and Exchange Commission (SEC) for a new ETF designed to track the spot price of ONDO, the native token of the decentralized finance (DeFi) platform Ondo Finance.
This filing, known as the “21Shares Ondo Trust,” aims to directly hold ONDO tokens and monitor their performance through the CME CF Ondo Finance-Dollar Reference Rate. Custody of these tokens will be entrusted to Coinbase, ensuring secure management.
The ETF is structured as a passive investment vehicle without any speculation or leverage involved. Authorized participants will have the flexibility to create or redeem shares either in cash or in-kind, promoting ease of access for investors.
ONDO serves as the utility token for Ondo Chain, a layer-1 proof-of-stake blockchain tailored towards institutional-grade financial markets and the tokenization of real-world assets (RWAs). Ondo Finance is making significant strides in revolutionizing how tokenized real-world assets are traded and managed.
Currently, ONDO boasts a market capitalization of approximately $3.5 billion, with a circulating supply of 3.1 billion tokens out of a total supply of 10 billion. The token is priced at roughly $1.12, which reflects a 48% drop from its December peak of $2.14, according to CoinGecko data.
Ondo Finance and Its High-Profile Support
The DeFi platform has notable backers including the Trump family’s World Liberty Financial, which acquired $250,000 worth of ONDO in December. The platform currently holds around 342,000 tokens valued at approximately $383,000. Despite the significant holdings, ONDO tokens represent only 0.2% of their $208 million portfolio, mostly consisting of stablecoins, wrapped Ether (ETH), and Bitcoin (BTC).
Advancing Institutional RWA Tokenization
This month, Ondo Finance acquired SEC-registered broker-dealer Oasis Pro. This acquisition paves the way for Ondo to launch tokenized securities in collaboration with venture fund Pantera Capital. Oasis Pro’s registration as an Alternative Trading System and transfer agent allows it to handle ownership management for securities, underscoring its regulatory compliance since 2020.
Earlier in the year, Ondo Chain was announced as a platform dedicated to institutional investors, enabling tokenization of real-world assets on a layer-1 blockchain designed for Wall Street firms.
Growth of Tokenized Real-World Assets
The overall onchain value of tokenized real-world assets has surged by 58% this year to nearly $25 billion. The majority of these assets, mainly private credit and US Treasurys, are tokenized on the Ethereum network, which holds a 55% market share.
Source for total real-world asset value: RWA.xyz
