21Shares Files Spot ONDO ETF: RWA Focus and Trump Family Connections

Asset manager 21Shares is significantly deepening its involvement in the digital asset market with a recent application filed with the U.S. Securities and Exchange Commission (SEC) for a spot Exchange Traded Fund (ETF) linked to Ondo Finance (ONDO). This strategic maneuver follows a prior filing for a SUI-based trust, underscoring both Ondo and Sui as pivotal interests for the firm, particularly in light of their reported connections to World Liberty Financial, an entity associated with the family of former U.S. President Donald Trump.

• 21Shares has submitted an application to the SEC for a spot ETF based on Ondo Finance (ONDO) tokens.
• This initiative follows a previous filing by 21Shares for a trust linked to the Sui blockchain.
• The proposed “21Shares Ondo Trust” is structured as a spot ETF, with Coinbase Custody designated as the custodian for ONDO assets.
• Ondo Finance specializes in the tokenization of real-world assets (RWA) on its Layer-1 Ondo Chain.
• Both Ondo and Sui projects reportedly have ties to World Liberty Financial, an entity associated with the family of Donald Trump.
• World Liberty Financial reportedly acquired $250,000 worth of ONDO tokens in December 2023 and also collaborated with the Sui team.

The Proposed 21Shares Ondo Trust

The product, formally designated as the 21Shares Ondo Trust, is structured as a spot ETF, implying direct investment in Ondo Finance tokens rather than derivatives or other speculative instruments. The application meticulously outlines mechanisms for both in-kind and cash creations and redemptions of shares, providing flexibility for institutional participants. Crucially, the filing explicitly prohibits the use of leverage or other speculative tools, aligning with a cautious approach to digital asset investment vehicles. Coinbase Custody has been named as the custodian for the underlying ONDO assets, leveraging its established infrastructure for secure asset management. 21Shares would serve as the sponsor of the ETF. While the filing details the operational framework, the specific exchange where the ETF would trade, pending SEC approval, was not disclosed.

Ondo Finance: Bridging Traditional Assets and Blockchain

Ondo Finance distinguishes itself within the blockchain ecosystem through its dedicated focus on the tokenization of real-world assets (RWA). Its native ONDO coin operates on the Ondo Chain, a Layer-1 blockchain specifically designed to facilitate this convergence of traditional financial instruments with decentralized ledger technology. This specialization positions Ondo at the forefront of a burgeoning sector that aims to unlock liquidity and accessibility for tangible assets—ranging from real estate to government bonds—by representing them as digital tokens. Such innovation has the potential to attract substantial institutional capital seeking exposure to traditional assets in a digitally native format, offering enhanced transparency, efficiency, and divisibility.

Strategic Motivations and Influential Connections

The strategic decision by 21Shares to pursue a dedicated ETF for Ondo Finance appears to be significantly influenced by the project’s reported connections to World Liberty Financial. This platform, which has been linked to the family of former President Donald Trump, notably acquired ONDO coins valued at $250,000 in December 2023, subsequently increasing its holdings. Furthermore, World Liberty Financial had previously established a collaboration with the Sui blockchain team, preceding 21Shares’ application for a SUI-based trust. These parallel developments suggest that 21Shares may be anticipating strategic advantages or foreseeing significant future growth potential from projects associated with this influential enterprise, potentially leveraging its network and strategic insights within emerging markets.

Market Response and Evolving Digital Asset Landscape

While the immediate market reaction to the ONDO ETF filing was relatively subdued, the persistent pursuit of such niche spot ETFs, especially those with perceived influential backing, underscores a deepening maturity within the digital asset investment landscape. This trend reflects a sophisticated evolution in asset management strategies, where firms like 21Shares are actively diversifying their product offerings to appeal to a broad spectrum of investors. By leveraging new market dynamics and pioneering emerging asset classes like RWA tokenization, asset managers are increasingly positioning themselves to capitalize on the expanding opportunities within the evolving digital economy.