21Shares Files for First-Ever ONDO ETF with the SEC, Pushing RWA Tokenization Mainstream

July 23, 2025 – Swiss asset manager 21Shares has filed for a physically backed exchange-traded fund (ETF) tied to ONDO, the native token of Ondo Finance, marking a potential breakthrough moment for real-world asset (RWA) tokenization in traditional finance.

The S-1 filing, submitted to the U.S. Securities and Exchange Commission (SEC), proposes a spot ETF designed to mirror the market value of ONDO. The fund would be passively managed and backed by actual ONDO tokens, with Coinbase Custody handling secure storage. If approved, it would become the first U.S.-listed ETF based on an RWA-focused cryptocurrency, creating a regulated investment path into blockchain-based U.S. Treasuries and other tokenized fixed-income assets.

Why This Matters for Crypto and Wall Street

Ondo Finance has already tokenized over $500 million in U.S. Treasuries and yield-bearing instruments, enabling retail and institutional users alike to access these assets on-chain. The platform bridges DeFi and TradFi, offering real-world yields without the traditional gatekeepers.

An ETF based on ONDO could signal mainstream adoption of RWA tokens, expanding their utility far beyond crypto-native circles. Analysts argue it could pave the way for ETFs tied to other tokenized fund platforms—including BlackRock and Franklin Templeton’s digital funds—especially as the RWA market eyes a projected $10 trillion TAM over the next decade.

Market Response and Regulatory Outlook

Following the announcement, ONDO’s price jumped 7%, driven by renewed investor confidence and speculation on ETF-driven inflows. On X (formerly Twitter), crypto voices labeled the filing a “game-changer,” drawing comparisons to the 2024 spot BTC and ETH ETF approvals that triggered a marketwide bull run.

Still, approval won’t come overnight. The SEC is expected to initiate a multi-month review process focused on market manipulation risks, custodial safeguards, and retail investor protections. However, many see 21Shares’ move as a calculated bet, timed with the SEC’s evolving attitude post-crypto ETF legalization in 2024.

21Shares, already a dominant force in the European crypto ETP space, has been expanding into the U.S. market aggressively. This filing marks its third major ETF proposal in under two years, signaling confidence that tokenized assets are next in line for regulatory legitimacy.

Looking Ahead

If successful, the ONDO ETF could unleash a flood of similar filings from other RWA and DeFi protocols, especially as tokenization continues to reshape capital markets. The move also puts Ondo Finance in the spotlight as the first RWA-native token with ETF-level backing, potentially attracting new capital from pension funds, advisors, and regulated platforms.

While approval is still pending, the message is clear: tokenized assets are moving out of crypto’s shadows and into the heart of traditional finance.

Did You Know?

21Shares’ co-founder Ophelia Snyder was once a neuroscience researcher at Stanford before pivoting to crypto ETFs—making her one of the few ETF pioneers with a background in both science and DeFi.