21Shares files amended S-1 to create Nasdaq-listed ONDO ETF with BitGo custody
21Shares amended its S-1 filing with the U.S. SEC to convert a previously proposed “21Shares Ondo Trust” into a Nasdaq-listed “21Shares Ondo ETF” that would hold ONDO tokens directly. The updated prospectus specifies a 10,000-share creation/redemption basket, allows cash creations (where the sponsor purchases ONDO on deposit), and shifts custody from a single custodian (Coinbase) to a dual-custodian model adding BitGo Bank & Trust, N.A. The filing adds operational details including “Vault Balance” split between cold and hot storage and states authorized participants bear slippage and trading costs on cash creations/redemptions. Under the SEC’s new ETF review timelines, approval could occur 20–75 days after this amendment, placing a potential window from late February to mid-April 2026. The filing comes amid Ondo Finance’s growing footprint in tokenized real-world assets and integration with MetaMask’s non-U.S. rollout of tokenized stocks and ETFs. Notable context: Ondo-linked token use by World Liberty Financial drew political attention after a $500,000 ONDO purchase, and BitGo recently obtained a national bank charter. Primary keywords: ONDO ETF, 21Shares, BitGo, Nasdaq, SEC filing.
Bullish
Issuance of a Nasdaq-listed ETF that directly holds ONDO represents an institutionalization of exposure to Ondo Finance’s token and to tokenized real-world assets (RWA). Key bullish signals: (1) product routinizes ONDO access via traditional brokerage channels, likely increasing demand and liquidity; (2) adding BitGo (a regulated national trust bank) as co-custodian reduces perceived custody risk, lowering an adoption barrier for institutional and retail broker-dealers; (3) clear operational design (basket size, cash creations/redemptions, cost allocation) reduces execution uncertainty for market makers and authorized participants. Short-term effects: expect elevated ONDO volatility and likely price appreciation on buy-side flows and ETF anticipation, plus arbitrage activity around NAV and secondary market spreads once listed. Trading volumes for ONDO and related RWA tokens may spike around SEC review milestones and at listing. Long-term effects: approval would set a precedent for token-native ETF products, potentially attracting new capital into RWA tokenization and increasing on-chain liquidity and integration with custodians and brokerages. Risks/neutralizing factors: SEC rejection or extended review would be bearish or neutral; limitations on cash creations could create temporary premium/discount dynamics; broader crypto market selloffs could mute positive impact. Historical parallels: approvals or filings for spot BTC and ETH ETFs led to sustained inflows and higher spot prices; similarly, a regulated ETF wrapper for ONDO would likely produce comparable demand dynamics in its market niche.