21Shares Pushes Into RWAs With Spot ONDO ETF Filing

Asset manager 21Shares has taken a decisive step into the fast-growing real-world asset (RWA) and DeFi sector by filing a preliminary prospectus with the U.S. Securities and Exchange Commission to launch the 21Shares Ondo Trust, a proposed spot ETF tracking the ONDO token.

The filing marks a notable expansion of U.S. crypto ETF ambitions beyond Bitcoin and Ethereum, signaling growing institutional curiosity around tokenized finance.

The development was first highlighted publicly by Coin Bureau, drawing attention to the broader implications for on-chain finance and regulated investment products:

If approved, the ETF would give U.S. investors direct exposure to ONDO through a traditional market structure, potentially opening the door for deeper capital inflows into tokenized assets and DeFi infrastructure.

A Spot ETF Directly Holding ONDO

According to the filing, the proposed fund would directly hold ONDO tokens rather than relying on derivatives or synthetic exposure. The ETF is designed to track the CME CF Ondo Finance Dollar Reference Rate, a benchmark that aligns with institutional pricing standards and transparent valuation practices.

Coinbase Custody has been named as the custodian, reinforcing the fund’s institutional-grade framework. The trust is also targeting a listing on Nasdaq, placing it alongside other high-profile digital asset ETFs competing for mainstream investor attention.

This structure mirrors earlier spot Bitcoin and Ethereum ETF approvals, but with an important distinction: ONDO is an ERC-20 token focused on tokenized real-world assets, not a base-layer blockchain asset. That difference alone positions the filing as a meaningful signal that regulators and asset managers are now exploring crypto exposure beyond the first two majors.

A Major Signal For RWA And DeFi Adoption

If the SEC grants approval, the 21Shares Ondo Trust would become one of the first U.S. spot ETFs tied to a token representing on-chain real-world asset infrastructure. This would mark a pivotal moment for RWAs, a sector increasingly viewed as the bridge between traditional finance and blockchain-based markets.

Tokenized real-world assets allow financial instruments such as U.S. Treasuries, equities, ETFs, and commodities to exist on-chain, offering benefits like faster settlement, global accessibility, and programmability. Ondo Finance has positioned itself at the center of this movement by building products that bring institutional-grade assets into decentralized environments.

An ETF tied to ONDO would effectively validate the RWA narrative at the regulatory level, signaling that institutional adoption is no longer limited to store-of-value assets like Bitcoin or smart contract platforms like Ethereum.

Instead, capital markets may be preparing to engage directly with the infrastructure layer that connects traditional finance to DeFi.

Bloomberg Analyst Reaction Highlights Market Shift

The filing also drew commentary from Bloomberg ETF analyst Eric Balchunas, who acknowledged the significance of the move while offering a candid perspective on the scale of the ETF market.

In a post on X, Balchunas said he had never heard of Ondo prior to the filing, adding context that underscores how early this phase still is:

“Never heard of this one, sounds like the name of a planet in Star Wars,” he noted.

The remark highlights a key reality. Even as crypto ETFs capture headlines, they remain a small fraction of the broader ETF universe. That makes the decision by 21Shares to file for a spot ONDO ETF particularly notable, it suggests asset managers are willing to experiment at the edges of the market in anticipation of future growth.

A Breakout Week For Ondo Finance

The ETF filing arrives during what has been a landmark week for Ondo Finance, marked by rapid product expansion and ecosystem growth.

Alongside the 21Shares filing, the Ondo team launched Ondo Perps, a new platform that allows users to trade perpetual futures on U.S. stocks, ETFs, and commodities. The move pushes Ondo deeper into hybrid finance territory, blending traditional market instruments with crypto-native trading infrastructure.

At the same time, Ondo has added over 200 tokenized stocks and ETFs to MetaMask, dramatically expanding retail access to tokenized financial products through one of the most widely used crypto wallets.

Together, these developments point to a coordinated strategy: build the rails for tokenized finance while expanding distribution across both institutional and retail channels.

Beyond Bitcoin And Ethereum

For much of the past decade, institutional crypto exposure has been almost entirely concentrated around Bitcoin and, more recently, Ethereum. Spot ETF approvals reinforced this narrow focus, creating a perception that regulatory clarity would arrive only for the largest, most established assets.

The ONDO filing challenges that assumption.

By targeting a DeFi and RWA-focused ERC-20 token, 21Shares is effectively testing whether regulators are ready to consider crypto assets tied to financial infrastructure rather than monetary primitives. If successful, it could set a precedent for future ETFs linked to tokenized bonds, equities, and yield-bearing on-chain products.

This shift matters because RWAs are often viewed as the sector with the clearest path to real-world revenue, institutional alignment, and regulatory compatibility.

What Approval Could Mean For The Market

An approved spot ONDO ETF would not just benefit one token or one platform. It would send a broader message that tokenized finance has reached a level of maturity worthy of traditional investment wrappers.

Such a development could accelerate:

• Institutional capital flowing into RWA protocols

• Regulatory engagement with tokenized asset standards

• Integration between TradFi platforms and DeFi infrastructure

• Broader awareness of non-Bitcoin crypto use cases

Even if approval takes time or faces resistance, the filing itself reflects confidence that the conversation has shifted.

Crypto is no longer just about price speculation. It is increasingly about rebuilding financial markets with programmable, on-chain systems, and institutions are starting to take notice.

A Turning Point For Tokenized Finance

The 21Shares ONDO ETF filing represents more than a regulatory application. It reflects a changing narrative around what crypto exposure can look like in the United States.

As Ondo Finance expands across perpetuals, tokenized securities, and wallet integrations, and as asset managers explore new ETF frontiers, the line between traditional finance and DeFi continues to blur.

Whether or not the ETF is approved in the near term, the signal is clear: real-world assets, tokenized markets, and on-chain finance are moving closer to the center of institutional strategy.

And this time, the spotlight is no longer limited to Bitcoin and Ethereum.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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