Will 21Shares’ ONDO ETF Fuel Institutional Crypto Surge?

21Shares filed an S-1 application for the ONDO ETF with the U.S. Securities and Exchange Commission (SEC), aiming to list and trade the exchange-traded fund.The filing is a significant step in bridging the crypto and traditional financial markets. OndoFinance specializes in tokenizing real-world assets.

Source: SEC.gov

ONDO ETF Aims to Bridge DeFi and Traditional Finance

When this is approved, Coinbase Custody will act as custodian and provide regulated exposure to the tokenized asset ecosystem of OndoFinance. The listing seeks to boost institutional adoption of ONDO ETF and other blockchain-based assets. By putting U.S. Treasury bonds onto DeFi systems, it may improve DeFi’s overall value locked and liquidity. Over the past few weeks, the company has teamed with Pantera, which represents a $250 million investment in tokenized RWAs. ONDO ETF is at the forefront of tokenization's transformation of finance through increased accessibility, efficiency, and transparency.

ONDO ETF to Drive Yield-Bearing Products into DeFi

Retail and institutional users can now access U.S. Treasuries and yield-bearing instruments on-chain thanks to OndoFinance's tokenization of more than $500 million in these assets. By bridging DeFi and TradFi, the platform provides practical yields without the need for traditional intermediaries.

This might indicate that RWA tokens are becoming widely used, which would greatly increase their usefulness outside of the crypto-native community.

Trading Volume Surges 21% Amid Institutional Interest

Source: Coinmarketcap

As a result of the news, the price increased  from $1.08 to $1.16, and the 24-hour trading volume increased 20.92% to $419M, indicating institutional interest. Even though the global cryptocurrency markets only gained approx 0.67% during that time, the market capitalization increased 2.04% to $3.53 billion. Currently the token price is $1.11 USD. Although the token saw a 64%  price increase over the past 30 days. As market interest grew, the launch of the ONDO ETF probably played a role in this price movement. Increased institutional involvement through filings like this may encourage spark in the global cryptocurrency market.

The Approval May Attract Pension and Institutional Capital

Already a major player in the European crypto ETP industry, 21Shares has been rapidly entering the American market. Its third significant Exchange Traded Funds proposal in less than two years is represented by this submission, demonstrating its confidence that tokenized assets will be the next to receive regulatory approval. As tokenization continues to change financial markets, this could trigger a wave of similar registrations from other RWA and DeFi protocols if it is successful. As the first RWA-native coin with Exchange Traded Fund-level support, the move further highlights OndoFinance and may draw in additional funding from advisers, regulated platforms, and pension funds.

The message is obvious even though permission is still pending, tokenized assets are emerging from the shadows of cryptocurrency and entering the mainstream of traditional finance.