21Shares Files for Spot Ondo ETF with Coinbase as Custodian

The filing describes a passive fund that will list on an exchange to be named later and value shares using an industry-standard pricing benchmark for ONDO tokens. Coinbase Custody Trust Company will safeguard the ONDO held by the trust.

ONDO tokens represent ownership in Ondo Finance, a decentralized finance protocol that focuses on institutional-grade financial products. The tokens trade on major cryptocurrency exchanges including Binance, Coinbase, and Kraken.

Large institutions can create or redeem ETF shares by exchanging ONDO tokens or cash with the trust. The document states the vehicle will not use leverage or derivatives and may sell limited ONDO only to cover expenses.

CF Benchmarks Ltd. will calculate the pricing benchmark from trades on major ONDO markets. Creations and redemptions can be completed in kind or in cash through designated third parties. The trust will track the performance of ONDO tokens without actively managing the holdings.

The sponsor is 21Shares US LLC, based in New York, with the trust organized in Delaware. The prospectus labels the product an “emerging growth company” and states that neither the SEC nor state regulators have approved the securities. Crypto analyst ThuanGlobal highlighted the filing:

21Shares has previously launched ETFs for Bitcoin and Ethereum in the United States. The company operates as one of the most active issuers of crypto-backed exchange-traded products globally and has expanded beyond major cryptocurrencies into single-token funds for newer digital assets.

The filing includes standard risk disclosures about cryptocurrency volatility, regulatory uncertainty, and market manipulation concerns. The trust will charge management fees, though specific fee structures were not disclosed in the initial filing.

If approved, the Ondo ETF would provide traditional investors with exposure to ONDO tokens through regulated brokerage accounts. The SEC has not indicated a timeline for reviewing the application or potential approval.

The application follows recent approvals for spot Bitcoin and Ethereum ETFs, which have attracted billions in assets since launching. 21Shares competes with other major asset managers including BlackRock, Fidelity, and Grayscale in the crypto ETF market.