21Shares, a prominent issuer of exchange-traded funds, has recently filed a preliminary application with the US Securities and Exchange Commission (SEC) for a new ETF designed to track the price of ONDO, the token of the Ondo Finance platform.
About the ETF Application and ONDO
The 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.
Support for Ondo Finance
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. Ondo Finance is making significant strides in revolutionizing how tokenized real-world assets are traded and managed.
The 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.
Growth of Tokenized Real-World Assets
Earlier 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.
This year, the on-chain value of tokenized real-world assets has surged by 58%, reaching nearly $25 billion. The majority of these assets, primarily private credit and US Treasurys, are tokenized on the Ethereum network, which holds a 55% market share.
The emergence of an ETF based on ONDO tokens and the ongoing development of Ondo Finance highlight the growing interest in tokenized real-world assets and their potential impact on financial markets.
