Swiss company 21Shares has submitted an application to the U.S. Securities and Exchange Commission (SEC) for the launch of a spot exchange-traded fund (ETF) based on the Ondo Finance (ONDO) coin. It is expected that shares of the new fund, named 21Shares Ondo Trust, will be available for purchase and sale in both physical and cash forms.
This is reported by Finway
Structure of the New ONDO-ETF and Investment Features
According to the documentation, the trust will invest directly in ONDO, which immediately makes the product a spot one — unlike instruments based on futures. The fund’s structure does not include the use of speculative mechanisms such as leverage. Custodial functions will be performed by Coinbase Custody, while 21Shares itself acts as the sponsor of this product. The specific exchange that will serve as the trading platform for the fund’s shares, in the event of SEC approval, has not yet been disclosed.
Context: Connection to World Liberty Financial and Market Impact
It is worth noting that ONDO is the native token of the Ondo Chain network, which operates as a layer one blockchain specializing in the tokenization of real-world assets (RWA). This coin, along with SUI, is part of the portfolio of World Liberty Financial — a platform connected to the family of former U.S. President Donald Trump. It is known that in December 2024, World Liberty Financial acquired ONDO for $250,000 and subsequently increased its position even further. Additionally, the platform collaborates with the Sui blockchain team.
Following the announcement of the partnership, 21Shares also filed for the launch of an ETF based on SUI, demonstrating interest in the development of projects related to businesses controlled by the Trump family.
“The issuance and redemption of shares will be conducted in both physical and cash forms”.
Despite the news, the market reacted little to the application: the price of ONDO fell by more than 5% in one day, but it maintained a 15% gain over the week, according to TradingView data.