Swiss-based crypto asset manager 21Shares has submitted a fresh ETF proposal to the U.S. Securities and Exchange Commission (SEC) to launch the first-ever fund (ETF) based on Ondo (ONDO) tokens.
The proposed ETF will be called the 21Shares Ondo Trust, and it will directly own ONDO tokens and measure their dollar value without leverage or derivatives. The ETF will track the CME CF Ondo Finance-Dollar Reference Rate, which is a benchmark that is operated by CF Benchmarks Ltd.
This index combines ONDO trades across the leading crypto exchanges to guarantee stable pricing. As per the filing, Coinbase Custody will be the official custodian, and all ONDO tokens will be stored in cold storage wallets to ensure their safety.
The Ondo ETF is designed as a passive investment product and will not be registered under the Investment Company Act of 1940. This means it won’t offer protections typically available under that law, nor will it shield investors from the volatility of ONDO’s price. The ONDO token itself is also not registered as a security.
Nevertheless, the announcement caused a great deal of investor interest. After the announcement, the price of ONDO rose by 5.27% to $1.11, and its market capitalization reached $3.51 billion, and the daily trading volume exceeded $430 million.
However, a launch date for the ETF has not yet been revealed, as the SEC is still reviewing the filing. This move by 21Shares comes after Truth Social, backed by Donald Trump, filed for a “Crypto Blue Chip” ETF featuring Bitcoin, Ethereum, and other top tokens.
Also Read: SEC Approves Bitwise Crypto ETF — Then Suddenly Hits Pause
