ONDO ETF Could Bring Tokenized Treasuries to Wall Street
21Shares, a leading issuer of cryptocurrency exchange-traded products, has filed an application with the United States Securities and Exchange Commission (SEC) for a spot ONDO ETF, that targets the native token of Ondo Finance.
The filing, dated July 22, 2025, intends to provide investors with exposure to tokenized real-world assets (RWAs) through decentralized finance (DeFi), in line with the growing institutional interest for DeFi in a changing regulatory landscape.
ONDO ETF Filing: A Step Toward Regulated DeFi Access
The proposed “21Shares Ondo Trust” will track the price of ONDO using the CME CF Ondo Finance-Dollar Reference Rate, with Coinbase serving as custodian, according to the SEC filing.
The Ondo ETF, a passively managed investment portfolio, holds ONDO tokens outright, and shares creation and redemption is in cash or in-kind through permitted participants.
As of July 23, 2025, the SEC has not issued a response, and the review process may include public comments and revisions, given the regulator’s cautious stance on crypto ETFs. The application is part of 21Shares’ strategy, following recent applications for Dogecoin, XRP, and Polkadot ETFs.
Ondo Finance, founded by ex-Goldman Sachs associates in 2021, focuses on tokenizing RWAs, such as United States Treasury bonds, through its Layer-1 Ondo Chain, launched in February 2025.
The European ONDO ETP from 21Shares, introduced in November 2024 with an expense ratio of 2.50%, indicates worldwide demand.
From Treasuries to Tokens: Ondo’s Role in the ETF Spotlight
The Ondo ETF filing has triggered market activity, with ONDO’s price increasing 4.69% to $1.12 in the last 24 hours. The token’s market capitalization stands at $3.5 billion, with a circulating supply of 3.15 billion out of a total of 10 billion tokens, according to CoinMarketCap.Â
ONDO price chart (Source: CoinMarketCap)
However, ONDO is down 48.2% from its December 2024 high of $2.14, in line with the overall market volatility. Daily trading volume exceeded $422 million, driven by Binance United States’ listing ONDO/USDT on July 23, 2025.
Ondo Finance has increased its market position through strategic moves, including the acquisition of Oasis Pro, an SEC-registered broker-dealer, and a $250 million RWA fund with Pantera Capital.
Meanwhile, the on-chain RWA market expanded by 58% in 2023 to nearly $25 billion, with Ethereum accounting for 55% of the share. Industry analysts suggest the ETF could legitimize tokenized Treasuries, although SEC approval remains uncertain, with a 95% approval rate for crypto ETFs projected in 2025.
