In a significant move set to further integrate the burgeoning crypto market with traditional finance, 21Shares has filed an S-1 application with the U.S. Securities and Exchange Commission (SEC) for the ONDO ETF. This proposed exchange-traded fund aims to provide regulated exposure to the tokenized asset ecosystem of Ondo Finance, a leader in bringing real-world assets (RWAs) onto the blockchain.
The filing marks a pivotal step in bridging the worlds of DeFi and traditional finance. Should the ONDO ETF receive SEC approval, Coinbase Custody is slated to act as custodian, offering a compliant pathway for investors to access Ondo Finance's innovative tokenized assets. This move is expected to significantly boost institutional adoption of not only the ONDO ETF but also other blockchain-based assets. By enabling the on-chain representation of U.S. Treasury bonds, the ONDO ETF could substantially enhance DeFi's overall total value locked (TVL) and liquidity, injecting traditional financial stability into the decentralized landscape.
Ondo Finance has been actively expanding its reach, recently partnering with Pantera Capital, which includes a substantial $250 million investment focused on tokenized RWAs. This collaboration underscores the growing confidence in the potential of tokenization to revolutionize finance by increasing accessibility, efficiency, and transparency.
Ondo Finance has already made significant strides in this area, having tokenized over $500 million in U.S. Treasuries and other yield-bearing instruments. This initiative allows both retail and institutional users to access traditionally exclusive financial products on-chain, offering practical yields without the need for traditional intermediaries. The successful launch of the ONDO ETF could further accelerate the mainstream adoption of RWA tokens, expanding their utility far beyond the crypto-native community.
The news of the S-1 filing has already made an impact on the market, with the price of ONDO increasing from $1.08 to $1.16, and its 24-hour trading volume surging by 20.92% to $419 million. This uptick, amidst a relatively modest 0.67% gain in the broader cryptocurrency markets, suggests significant institutional interest. The token's market capitalization also rose by 2.04% to $3.53 billion, even though the price has since adjusted to $1.11 USD. Notably, ONDO has seen an impressive 64% price increase over the past 30 days, with the anticipation of the ONDO ETF likely playing a crucial role in this upward trajectory. Increased institutional involvement through such filings is expected to invigorate the global cryptocurrency market.
As a dominant force in the European crypto ETP industry, 21Shares has been aggressively expanding its presence in the American market. This S-1 submission represents its third major Exchange Traded Fund proposal in less than two years, highlighting the firm's strong conviction that tokenized assets are poised for regulatory approval.
A successful approval of the ONDO ETF could trigger a wave of similar registrations from other RWA and DeFi protocols, fundamentally reshaping the financial landscape. As the first RWA-native coin to potentially receive Exchange Traded Fund-level support, this move further elevates Ondo Finance's standing and may attract substantial capital from financial advisors, regulated platforms, and even pension funds.
While regulatory approval is still pending, the message is clear: tokenized assets are steadily transitioning from the fringes of the cryptocurrency world into the mainstream of traditional finance.
July 2025, Cryptoniteuae