Decentralized finance platform Ondo Finance has taken a significant step towards launching its ETF. In a recent report, crypto exchange-traded product (ETP) provider 21Shares filed a Form S-1 registration statement with the US Securities and Exchange Commission (SEC) for the 21Shares Ondo Trust.
The proposed ETF would track the performance of the platform’s native token, ONDO, serving as a passive investment vehicle for traders who wish to invest directly in the token without leverage or complex derivatives.
The proposed fund would also mirror the CME CF Ondo Finance-Dollar Reference Rate, an index managed by CF Benchmarks Ltd., which combines ONDO trades from several leading cryptocurrency exchanges.
About Ondo Finance
Ondo Finance is a DeFi protocol that bridges traditional financial markets with the blockchain by tokenizing real-world assets, such as U.S. Treasuries, bonds, and stocks. With its headquarters in New York, the platform was founded in 2021 by Nathan Allman and Pinku Surana.
Apart from raising approximately $24 million in funding from investors such as Pantera Capital and Founders Fund, Ondo Finance has also garnered the attention of US President Donald Trump.
On-chain data revealed that the Trump-backed DeFi project, World Liberty Financial, purchased approximately $250,000 worth of ONDO in December, and its total holdings of the token amount to 342,000, valued at roughly $383,000.
While the platform has made significant progress by filing the registration statement, the U.S. SEC’s forthcoming review will be pivotal in deciding the proposal’s outcome, and the ETF’s launch will depend on the regulator’s approval.
In the event of a successful launch, Coinbase Custody would store the tokens for the DeFi protocol in a cold storage wallet as the official custodian.
More ETF Filings
In recent times, the number of entities filing for ETFs has seen a significant surge, with some successfully launching their products while others are still pending approval. Earlier this month, Trump Media filed for a Truth Social Crypto Blue Chip ETF with the U.S. SEC.
The proposed ETF would hold five cryptocurrencies with large market caps, including Bitcoin, Ether, Solana (SOL), Cronos (CRO), and Ripple (XRP).
Although numerous ETFs are pending approval, the new SEC rules may streamline the ETF listing process, potentially reducing the backlog of pending approvals.
