21Shares Files for Passive ONDO ETF with SEC

• 21Shares has filed with the SEC to launch a new ETF that directly holds the ONDO token and tracks its dollar value.

• The fund will use Coinbase Custody for safekeeping and will not offer protection from ONDO’s price volatility.

• ONDO’s price rose 2.3 percent after the filing, and its market cap reached $3.44 billion, with strong trading volume.

Crypto asset manager 21Shares has submitted a registration with the U.S. Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) focused on the Ondo token (ONDO). Named the “21Shares Ondo Trust,” the proposed ETF will hold ONDO directly and track the CME CF Ondo Finance-Dollar Reference Rate.

According to the SEC filing, the fund aims to replicate the dollar value of ONDO without using leverage or derivatives. The ETF will be a passive investment vehicle, with shares expected to trade on a national securities exchange. However, the specific listing venue and ticker symbol have not yet been revealed.

Coinbase Custody to Secure ONDO Holdings

Coinbase Custody Trust Company will serve as the fund’s official custodian. It will hold all ONDO tokens on behalf of the Trust in secure, segregated accounts. The assets will be stored in cold wallets to protect against theft and loss.

The ETF will not be registered under the Investment Company Act of 1940. As a result, it will not be subject to the investor protections typically associated with mutual funds. Furthermore, the ONDO token itself is not registered as a security. This means the ETF will not shield investors from ONDO price volatility.

CF Benchmarks Ltd, a subsidiary of Kraken, manages the reference rate. The benchmark aggregates executed ONDO trades across major crypto exchanges to offer a reliable market price.

ONDO Token Surges After Filing

Following the SEC filing, ONDO experienced a 4.73% price increase, climbing to $1.11. Its market capitalization rose to $3.44 billion, with daily trading volume exceeding $343 million. The filing has triggered a positive response from the market, as investors anticipate increased institutional exposure.

No official launch date has been set for the ETF, and the registration remains subject to SEC approval. The move by 21Shares reflects a broader trend among crypto asset managers to expand their offerings in response to growing investor demand.

Earlier this year, Truth Social, a platform founded by Donald Trump, filed for a crypto blue-chip ETF. That fund proposal included tokens such as Bitcoin, Ethereum, Solana, XRP, and Cronos.