Crypto exchange-traded product (ETP) provider 21Shares has brought Ondo to the spotlight after filing for an Ondo exchange traded fund (ETF). As per reports, the firm submitted the S-1 application form with the US Securities and Exchanges Commission (SEC).
The 21Shares recent ETF filing is set to track the performance of ONDO. Upon the news, the altcoin has surged by over 6% on the day due to increased attention from investors.
21Shares Ondo ETF Filing with the SEC
In a move to capitalize on the potential of Ondo Finance, a decentralized finance (DeFi) platform, 21Shares filed to launch an ETF based on the platform’s native token, Ondo (ONDO). The filing that happened on July 22 marks the first instance of an Ondo Trust Spot exchange traded fund.
According to the official Form S-1 filing, the Trust Spot ETF will only track the price of ONDO. 21Shares also structured the proposed investment tool as a passive investment vehicle. The Trust will use the CME CF Ondo Finance-Dollar Reference Rate to track the performance of Ondo.
“The Trust’s investment objective is to seek to track the performance of ONDO, as measured by the performance of the CME CF Ondo Finance-Dollar Reference Rate – New York Variant,” the filing noted.
Additionally, 21Shares will custody its Ondo tokens for the ETF with the Coinbase Custody Trust Company. This firm is well known for its digital assets custodial services. However, the filing with the SEC does not specify some vital details such as the name of the exchange where the 21Shares ETF will be listed. But nonetheless, these details will be provided in future filings.
Ondo ETF Filing Sparks Optimism
21Shares’s Ondo ETF filing has been received with optimism across the crypto market. According to a post on X by top crypto analyst Marty Party, this filing is the first instance of an ETF based on erc-20 coin and could trigger more ETF filings.
“21Shares files S-1 for an @OndoFinance Trust Spot ETF…This is the first erc-20 based Spot ETF application and will open the door to more non L1 blockchain assets to list as ETFs,” Marty Party wrote.
If approved, the Ondo ETF will allow institutional investors to have low-risk access to Ondo Finance’s altcoin. With institutional influx, the altcoin could face a surge in capital inflow potentially fueling a price surge.
Besides Ondo, 21Shares is also awaiting several ETF approval from the US SEC. The firm previously applied for ETFs based on XRP, Solana(SOL), Polkadot(DOT) and SUI which are yet to be approved.
ONDO’s Price Rallies 6% Amid ETF News
Optimism stemming from the Ondo ETF filing is already reflecting on the price. As per Coingecko data, ONDO is currently trading at $1.10 marking a 6.1% surge on the day. While the current level shows a slight dip, the altcoin topped to $1.15 earlier as the ETF news fueled the rally.
The ETF filing also comes amid a broader market surge with Ondo rallying by over 14% over the last 7 days. The altcoin has also surged by over 60% within the last one month. Its market cap has also increased to $3.47 as of this writing. However, sustainability of the current rally will depend on various factors such as technical and on-chain metrics.
[…] Ondo also registered a sharp increase in transactions as well. These numbers imply that investors believe there is a potential in the model and are early positioning. To international traders, tokenized stocks will allow them to purchase US equities which could otherwise be inaccessible. […]