RWA leader Ondo is sprinting towards ETF transformation! 21Shares has submitted an ONDO trust application to the US SEC.

The crypto ETF issuer 21Shares has submitted a registration statement for the "21Shares Ondo Trust" to the U.S. Securities and Exchange Commission (SEC), proposing to launch a passive exchange-traded fund (ETF) that directly holds ONDO tokens. This ETF aims to track the CME CF Ondo Finance-Dollar reference interest rate. The news has stimulated ONDO prices to rise 5.3% over 24 hours, with market capitalization surpassing $3.5 billion. If approved, it will become the first spot ETF anchored to a single token (not BTC/ETH), creating a new paradigm for institutional compliance to get on board.

ETF Core Structure: Directly Held Tokens + CME Benchmark Interest Rate According to the submitted preliminary prospectus, the 21Shares Ondo Trust has the following key features:

• Directly Held Assets: The ETF will directly purchase and hold ONDO Tokens, without using derivatives or leverage to replicate the price, minimizing tracking error.
• Passive Tracking Strategy: It adopts a passive management approach, anchoring the CME CF Ondo Finance-Dollar reference interest rate. This index is managed by CF Benchmarks Ltd and aggregates ONDO trading data from mainstream exchanges.
• Top Custody Assurance: Selected major CEX Custody Trust Company as the custodian, assets will be held in secure, segregated accounts, primarily utilizing cold storage to prevent theft and loss risks.
• Listing Plan: ETF shares will be listed on exchanges across the United States, with specific trading venues and codes yet to be disclosed.

Regulatory Status and Risk Warning The ETF application is currently under SEC review and has not yet taken effect. Please pay attention to the following key information:

• Not subject to the 1940 Act: This trust is not registered under the Investment Company Act of 1940, and therefore is not subject to certain investor protection provisions provided by that Act.
• Price Volatility Risk: The product cannot avoid the high volatility risk of the ONDO Token itself, and investors must bear the losses from market fluctuations.
• Token Attribute Declaration: The document clearly states that the ONDO Token is not registered as a security, and this declaration may affect the SEC's approval considerations.

Market Reaction: ONDO rises against the trend, trading volume surges ETF application news triggers positive market response:

• Price Boost: ONDO price has risen to $1.14, with a 24-hour increase of 5.3% (during which the overall market has generally corrected).
• Market capitalization rises: ONDO's market capitalization increases to $3.5 billion, consolidating its position as the leading Token in the RWA (Real World Assets) sector.
• Active Trading: 24-hour trading volume exceeds $343 million, indicating a significant increase in capital attention.

Industry Background: The Race for Single Asset ETFs Has Begun The move by 21Shares marks a new stage in the competition for encryption ETFs:

• Distinct from the previous broad-based encryption index ETFs like the approved Spot BTC/ETH ETF, and the blue-chip coin combination ETF (including BTC, ETH, SOL, XRP, etc.) applied for by Trump's Truth Social, the ONDO ETF is the first application focused on a single functional Token.
• If approved, it will open an ETF path for other tokens with clear utility and institutional attention (such as MKR, UNI, etc.), accelerating institutional capital allocation to specific encryption ecosystems.

Conclusion: The application for the 21Shares ONDO Spot ETF is a key milestone in the evolution of crypto assets into mainstream financial instruments. Its structure of "direct holding token + CME benchmark + top-tier custody" provides a viable template for compliance and institutional-level entry for high-risk functional tokens. Despite facing strict scrutiny from the SEC regarding token attributes and the 1940 Act exemption, this move has significantly boosted market confidence in the RWA sector and ONDO tokens. If ultimately approved, it will completely change the liquidity landscape and valuation model of single tokens and may trigger a wave of ETF applications for other leading protocol tokens. Investors should closely monitor the SEC's review progress and potential changes in regulatory direction, as this case will serve as a litmus test for observing the tolerance of U.S. regulatory agencies towards innovative crypto financial products.