Institution-preferred cryptocurrency ONDO garnered attention as it infiltrated ETFs, reportedly by 21Shares.

In a significant move for the digital asset industry, Swiss asset manager 21Shares has filed an application with the Securities and Exchange Commission (SEC) to launch the "21Shares Ondo Trust". This ETF aims to provide direct exposure to the ONDO token, the native asset of Ondo Finance, a platform for tokenizing real-world assets (RWA).

If approved, the 21Shares Ondo Trust would allow pension funds, financial advisors, and regulated platforms to access tokenized assets without legal or technical friction. The fund will track the CME CF Ondo Finance-Dollar Reference Rate, designed to reflect the average price of the token on major exchanges.

The 21Shares Ondo Trust will directly purchase and hold ONDO tokens, without leverage or synthetic instruments. This approach ensures a straightforward and transparent investment vehicle for institutional investors.

The total value of real-world assets tokenized on the blockchain has surpassed $25 billion, indicating a growing interest in this sector. In fact, over 50% growth in the tokenization of real-world assets has been observed so far this year.

Trading volume of ONDO spiked over 15%, surpassing $400 million daily. The institution that acquired more than 340,000 ONDO tokens in December 2021 was Binance. At the time of writing, ONDO's price has slightly corrected, trading near $1.08, but it surged over 10% in 24 hours, reaching $1.16 per unit.

Ondo Finance's strategy is to become the preferred infrastructure for institutions, aiming to surpass Ethereum's lead in the sector in Treasury bonds and private credit. The platform uses Ondo Chain, a blockchain that combines institutional validators, integrated oracles, and omnichain bridges to issue and custody tokenized assets, and ensure secure distribution.

Recently, Ondo Finance acquired Oasis Pro, a regulated broker-dealer, FINRA member, and SEC registrant, further strengthening its position in the industry. Analysts James Seyffart and Eric Balchunas of Bloomberg Intelligence have closely tracked the new crypto ETF presentation.

If the SEC approves the 21Shares Ondo Trust, ONDO would become the first institutional-backed real-world asset token to trade on an exchange. This development marks a key step towards the institutionalization of this digital asset, potentially opening up a new era for investment in tokenized real-world assets. Custody for the 21Shares Ondo Trust will be handled by regulated entities, storing assets in segregated, cold storage accounts.

Ondo Chain monitors and verifies prices and reserves in real-time using on-chain oracles to maintain transparency and accuracy. This focus on transparency and regulatory compliance sets Ondo Finance apart in the rapidly growing market of tokenized real-world assets.

As the digital asset industry continues to evolve, the launch of the 21Shares Ondo Trust signifies a significant step towards institutional acceptance and investment in this sector. With its focus on transparency, regulatory compliance, and the tokenization of real-world assets, Ondo Finance is well-positioned to lead this evolution.

Institution-preferred cryptocurrency ONDO garnered attention as it infiltrated ETFs, reportedly by 21Shares.