What happened?
Exchange-traded fund provider 21Shares has filed with the U.S. Securities and Exchange Commission for a spot ETF that will track the native token of Ondo Finance, called ONDO. The proposed “21Shares Ondo Trust” is designed to hold ONDO tokens directly and will follow the CME CF Ondo Finance-Dollar Reference Rate. This filing follows Ondo Finance’s recent acquisition of SEC-registered broker-dealer Oasis Pro, marking its commitment to enhance its tokenized securities strategy.
Who does this affect?
This development primarily affects institutional investors and financial entities interested in blockchain-based tokenization. Ondo Finance, whose chain is purpose-built for institutional finance and real-world asset tokenization, stands to benefit significantly. Moreover, companies like World Liberty Financial, which have invested in ONDO, as well as other stakeholders in the tokenization space, will be impacted by changes in market dynamics and increased adoption.
Why does this matter?
The filing of this ETF represents a notable step forward in integrating blockchain-based assets with traditional financial markets, potentially opening up new avenues for institutional investment in cryptocurrencies. With the growing market for tokenized real-world assets reaching $25 billion on-chain, this move could drive further growth and accessibility in the crypto market. The potential approval of such ETFs can lead to increased participation from traditional investors, thereby impacting the overall cryptocurrency ecosystem positively.