21Shares Files Spot ETF Linked to Ondo Finance Token

21Shares has filed to create a spot exchange-traded fund (ETF) linked to the token of Ondo Finance, signaling growing interest in blockchain-based financial products. The move comes as multiple firms continue to tokenize traditional assets and offer them on digital platforms.

Separately, Blockchain.com and Ondo Finance announced that they are now offering tokenized U.S. stocks and ETFs to eligible users in Europe. This expands access to real-world assets (RWAs) for European investors through the Blockchain.com DeFi wallet.

China’s securities regulator has simultaneously increased oversight on offshore tokenized assets backed by onshore assets, citing risks of speculation and financial instability. The guideline requires domestic entities to submit filings and asset details for approval.

Why the Move Happened

21Shares’ filing reflects a broader trend in the financial industry to integrate blockchain-based products into traditional investment vehicles. The Ondo Finance token, already available on platforms like Blockchain.com, has demonstrated strong demand among investors looking for on-chain access to real-world assets.

The partnership between Blockchain.com and Ondo Finance aims to simplify access to institutional-grade assets for retail investors. This expansion into Europe builds on earlier successes in Africa and South America.

China’s regulatory move, however, introduces new hurdles for tokenized assets involving onshore Chinese assets. The CSRC has emphasized the need for transparency and risk management, requiring asset-controlling entities to submit detailed filings.

What Analysts Are Watching Next

Analysts are paying close attention to how quickly European investors adopt tokenized assets and whether these offerings gain traction among institutional investors. The success of tokenized ETFs, such as those representing gold and silver, may influence broader market adoption.

Regulatory developments in other jurisdictions will also be key. While China’s rules apply specifically to offshore tokenized assets, similar actions by other regulators could impact the growth of the RWA market.

Investors are also monitoring how 21Shares and other firms navigate the evolving regulatory landscape for token-based ETFs. If approved, such products could reshape the way traditional assets are traded and held in digital form.