Bitcoin News Today: 21Shares Files First RWA Token ETF as ONDO Surges 64.7% on Market Cap Jump to $3.5B

21Shares, a leading crypto ETP issuer, has submitted a Form S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to launch an ETF tracking ONDO, the token of Ondo Finance’s real-world asset (RWA) tokenization platform. The filing, dated July 22, 2025, seeks to create the 21Shares Ondo Trust, a passive investment vehicle designed to mirror ONDO’s price performance. This move could mark the first SEC-approved spot ETF for an ERC-20-based application-layer token, distinct from layer-1 protocols like Ethereum or Solana. The ETF will use the CME CF Ondo Finance-Dollar Reference Rate as its pricing benchmark and rely on Coinbase Custody Trust Company for asset custody [1].

ONDO’s price and market capitalization have surged in anticipation of the filing. Data from BeInCrypto and CoinGecko show the token gained 64.7% over the past month, with a 6.47% daily increase pushing its price to $1.12. Its market cap has risen from $2 billion to over $3.5 billion, outperforming broader crypto market trends. Analysts attribute this growth to growing institutional and retail confidence in RWA platforms, which facilitate tokenized access to traditional financial instruments like U.S. Treasuries and yield-bearing stablecoins [2]. Ondo Finance’s products, including OUSG (tokenized U.S. Treasury securities) and USDY (yield-bearing stablecoins), are seen as foundational elements for bridging DeFi and traditional finance.

The proposed ETF’s structure mirrors recent SEC-approved Bitcoin ETFs, employing a simple one-to-one ratio between underlying assets and ETF shares. However, ONDO’s utility is tied to RWA infrastructure, distinguishing it from speculative assets like Bitcoin or Ethereum. If approved, the ETF could provide institutional investors with regulated access to RWA tokens through traditional channels such as retirement accounts and pension portfolios. 21Shares has not yet disclosed the listing exchange, but future amendments may address this detail [3].

Industry reactions highlight the filing’s potential to attract institutional capital. Analyst Marty Party noted it could open the door for non-L1 tokens to list as ETFs, while trader Jeff Cook labeled ONDO “the next institutional darling,” citing early accumulation by “smart money.” Bloomberg’s Eric Balchunas humorously remarked on the rapid pace of altcoin ETF filings, underscoring the expanding regulatory pipeline. 21Shares has also submitted applications for ETFs tracking Polkadot, XRP, Solana, and Sui, reflecting a broader trend toward diversifying crypto ETP offerings [4].

The SEC’s evolving stance on crypto ETFs is evident in its recent approvals for spot Bitcoin and Ethereum ETFs. Ondo Finance’s emphasis on transparency—through investor disclosures, attestation reports, and real-time asset backing—may bolster the ETF’s regulatory viability. Approval would test the SEC’s willingness to legitimize on-chain access to traditional financial markets, a critical step for RWA adoption.

While immediate approval remains uncertain, the filing signals growing institutional recognition of RWA tokens. 21Shares, already a major ETP issuer in Europe, is leveraging its aggressive U.S. market entry strategy to position ONDO as a regulated gateway to yield-generating real-world assets. For investors, the outcome of the SEC’s review could catalyze ONDO’s adoption, mirroring the impact of BlackRock’s iShares Bitcoin Trust on BTC.

Regardless of approval timelines, the momentum around RWA tokens suggests they are transitioning from niche concepts to mainstream financial instruments. 21Shares’ initiative reflects a broader industry shift toward tokenized finance, with ONDO’s unique role in bridging DeFi and traditional markets placing it at the forefront of this evolution.

Source: [1] https://coinmarketcap.com/community/articles/68809fdc5d7d9f5332acaa97/ [2] https://coinmarketcap.com/community/articles/68809fdc5d7d9f5332acaa97/ [3] https://coinmarketcap.com/community/articles/68809fdc5d7d9f5332acaa97/ [4] https://coinmarketcap.com/community/articles/68809fdc5d7d9f5332acaa97/