ONDO ETF Coming? Here Are the Rumours and Facts

The world of cryptocurrency continues to buzz with speculation about new financial products, and one of the latest topics garnering attention is the possible launch of the ONDO ETF.

Recently, a prominent player in the crypto investment space, 21Shares filed with the U.S. Securities and Exchange Commission (SEC) to create a spot exchange-traded fund (ETF) based on the Ondo Finance coin, known as ONDO.

But what does this mean for investors and the crypto market at large? Let’s dig into the rumors and facts surrounding the potential ONDO ETF and explore how it could impact the world of tokenized assets.

What is the ONDO ETF and How Does It Work?

The ONDO ETF, as proposed by 21Shares, is an exchange-traded fund that would allow investors to gain exposure to ONDO, the native coin of the Ondo Finance network. 

This network is known for its focus on tokenizing real-world assets (RWA), allowing traditional assets like real estate, commodities, and others to be represented in the digital world.

The proposed ONDO ETF will directly invest in ONDO coins, making it a spot ETF, which means it will hold the actual digital asset rather than using derivatives or leverage.

The fund’s structure is relatively straightforward: 21Shares would issue shares that can be redeemed both in-kind and in cash.

Coinbase Custody will act as the custodian for the assets, ensuring that the ONDO tokens are securely stored, while 21Shares itself will sponsor the fund. The exchange where the ETF shares will be traded, however, remains unspecified.

Read Also: What is a Bitcoin Futures ETF?

This move marks an exciting development for both ONDO holders and those interested in the growing space of tokenized real-world assets.

While many ETFs are built around traditional cryptocurrencies, such as Bitcoin and Ethereum, the ONDO ETF offers a unique opportunity for investors to dive into a lesser-known but innovative blockchain network.

The Link Between ONDO and World Liberty Financial

One of the most intriguing aspects of the proposed ONDO ETF is its connection to World Liberty Financial (WLFI), a platform that has made waves due to its association with prominent political figures.

Rumors have circulated that WLFI, which reportedly has backing from the Trump family, may be playing a crucial role in the rising popularity of ONDO.

In December 2024, WLFI made headlines by purchasing $250,000 worth of ONDO coins, which they followed up by increasing their holdings. This move indicates a growing interest in ONDO from influential entities.

As World Liberty Financial continues to expand its reach, its relationship with ONDO could play a pivotal role in driving up the token's value and visibility.

With this strategic backing, 21Shares may be positioning itself to ride the coattails of the political and business power behind WLFI. This potential influence could provide an added layer of legitimacy to the ONDO ETF, attracting a broader base of institutional investors.

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Why Is 21Shares Betting on ONDO?

21Shares is no stranger to launching ETFs that focus on digital assets, and its decision to back the ONDO ETF is far from random. The choice of ONDO comes at a time when tokenized real-world assets (RWA) are gaining more attention in the blockchain and crypto space.

By targeting the ONDO token, 21Shares is tapping into the broader trend of integrating traditional assets with blockchain technology.

The ONDO coin operates on the Ondo Chain, a Layer-1 blockchain designed to bridge the gap between traditional finance and digital currencies. It specializes in tokenizing real-world assets, which has the potential to revolutionize various industries, from real estate to commodities trading.

With growing interest in these types of assets, an ETF focused on ONDO could be a key way to attract investors seeking to diversify their portfolios with tokenized assets.

Additionally, 21Shares’ decision to file for a SUI ETF, shortly after its ONDO ETF application, suggests that the company is looking at multiple projects with growth potential, particularly those with connections to the Trump-backed World Liberty Financial platform.

This indicates that 21Shares sees a unique opportunity in leveraging the combination of blockchain technology and business ties to influential figures.

What Does This Mean for Investors?

If the ONDO ETF is approved, it could provide a new, accessible way for investors to engage with the Ondo Finance ecosystem. As with other ETFs, it would allow individuals to gain exposure to the ONDO token without needing to directly hold or manage the asset themselves.

This opens up the potential for a wider range of investors, including those who may not be familiar with crypto or blockchain technology but are looking to diversify their investments.

For those already involved in the world of cryptocurrency, the ONDO ETF offers an opportunity to invest in a project that focuses on the tokenization of real-world assets, a growing area within the blockchain sector.

If the fund gains traction, ONDO's value could see significant increases, making it a potentially lucrative investment for both seasoned crypto enthusiasts and newcomers alike.

It’s also important to note that despite the excitement surrounding the ETF, ONDO’s price has not seen a significant reaction yet. This could suggest that the market is waiting for more concrete developments before fully embracing the project.

Conclusion

The ONDO ETF represents an exciting development for the world of cryptocurrency and tokenized assets. With 21Shares backing the fund and World Liberty Financial’s connections helping to generate interest, the ONDO ETF has the potential to shake up the traditional financial landscape.

However, like all things in the crypto space, it’s important to proceed with caution and keep an eye on further developments.

For those looking to stay on top of the latest crypto news and trends, be sure to visit Bitrue Blog for up-to-date insights or check out Bitrue Exchange to start trading ONDO or other cryptocurrencies.

FAQ

What is ONDO Finance?

ONDO Finance is a blockchain network focused on tokenizing real-world assets (RWA), such as real estate and commodities, to make them accessible via blockchain technology.

What is an ETF?

An ETF, or exchange-traded fund, is a financial product that allows investors to trade a bundle of assets, like stocks or cryptocurrencies, without directly owning the individual assets.

Why is 21Shares launching an ONDO ETF?

21Shares sees growth potential in the Ondo Finance network, particularly its focus on tokenizing real-world assets. The ETF will provide a way for investors to access this emerging market.

How does World Liberty Financial relate to ONDO?

World Liberty Financial, reportedly backed by the Trump family, has been acquiring ONDO coins, which has helped boost the visibility and legitimacy of ONDO in the market.

What are tokenized real-world assets (RWA)?

RWA refers to physical or traditional assets like real estate or commodities that are converted into digital tokens, enabling easier access and trading on blockchain networks.