The fund includes top assets like Bitcoin and Ethereum, and was granted accelerated approval before being stayed by the Commission for further review. Industry analysts compared the move to a similar delay experienced by Grayscale and speculate the pause may be tied to internal SEC politics or a broader effort to create new crypto ETF listing standards. Meanwhile, 21Shares filed for a spot ETF tracking the price of Ondo (ONDO), the native token of the Ondo Chain, which focuses on institutional-grade tokenized real-world assets. This filing was made after Ondo Finance’s acquisition of regulated broker-dealer Oasis Pro to strengthen its position in the booming RWA market.
Bitwise Crypto ETF in Limbo
The US Securities and Exchange Commission (SEC) approved, and then promptly paused, the conversion of Bitwise’s crypto index fund into an exchange-traded fund (ETF). Bitwise’s 10 Crypto Index Fund (traded under BITW) includes exposure to leading cryptocurrencies like Bitcoin and Ethereum.
It received an “accelerated approval” from the SEC’s Division of Trading and Markets. This designation would have allowed Bitwise to request earlier activation of its ETF status. However, in an unusual twist, the same day saw the SEC issue a stay on that approval, pending a full Commission review.
(Source: SEC)
The move immediately sparked comparisons to a similar delay involving Grayscale’s Digital Large Cap ETF, which was also approved and then paused shortly thereafter. Bloomberg ETF analyst James Seyffart explained that the approval was stayed by one or more SEC commissioners, which now prevents Bitwise from proceeding with the conversion for the time being. He pointed out that the timing was earlier than expected, as the decision wasn’t due until the following week.
Naturally, the pause drew a lot of reactions from people in the industry. Nate Geraci, president of NovaDius Wealth Management, called the situation “bizarre,” while Scott Johnsson of Van Buren Capital speculated that the approval was rushed under delegated authority to circumvent potential opposition from SEC Commissioner Caroline Crenshaw. Johnsson also theorized the delay could be part of a strategy by SEC Chair Paul Atkins to avoid the constraints of the 240-day statutory period that is required for final ETF approvals.
Bloomberg’s Eric Balchunas added that the SEC might be intentionally stalling ETF conversions while it works to establish a comprehensive listing standard for crypto ETFs. He suggested that new generic guidelines could be announced soon, which would include a public comment period and implementation before the upcoming deadlines in October.
Meanwhile, the SEC also extended its decision timeline on whether to allow in-kind redemptions for Bitwise’s Bitcoin and Ethereum spot ETFs. According to journalist Eleanor Terrett, discussions are ongoing among the SEC, fund managers, and stock exchanges on how to streamline the approval process for certain crypto-related investment products. This could suggest that broader structural changes may be on the horizon.
21Shares Files for Ondo Spot ETF
Meanwhile, 21Shares filed a preliminary prospectus with the US SEC for a new exchange-traded product that will track the spot price of Ondo, the native token of the decentralized finance protocol Ondo Finance. The proposed “21Shares Ondo Trust” is designed to passively hold ONDO tokens, with performance benchmarked to the CME CF Ondo Finance-Dollar Reference Rate. Coinbase was tapped to provide custody services for the fund’s assets.
21Shares Ondo ETF filing (Source: SEC)
The product is intended to serve as a straightforward investment vehicle without any use of speculation or leverage. Investors will be able to create or redeem shares either in cash or in-kind.
Ondo, which is the underlying token, powers the Ondo Chain. This is a layer-1 proof-of-stake blockchain purpose-built for institutional-grade financial markets and tokenized real-world assets (RWAs). With a circulating supply of 3.1 billion tokens and a total cap of 10 billion, Ondo currently trades around $1.11. This means it is down almost 48% from its December all-time high of $2.14. Its total market capitalization stands at $3.5 billion.
ONDO all-time price action (Source: CoinMarketCap)
Ondo Finance also attracted attention from the Trump family’s decentralized finance venture, World Liberty Financial, which bought $250,000 worth of ONDO tokens in December. It currently holds 342,000 tokens valued at roughly $383,000, but this is only a minor 0.2% fraction of its $208 million portfolio that mainly consists of stablecoins, wrapped Ether, and Bitcoin.
Earlier this month, Ondo Finance made a strategic move by acquiring Oasis Pro, a registered broker-dealer, to accelerate its efforts in launching tokenized securities. This initiative is being developed in collaboration with Pantera Capital.
Oasis Pro holds multiple regulatory registrations, including as an Alternative Trading System and a transfer agent, and has been a FINRA member since 2020. This acquisition is part of Ondo Chain’s goal of providing a compliant blockchain infrastructure for institutions looking to tokenize real-world assets, particularly in traditional finance sectors.
The broader market for tokenized real-world assets has seen explosive growth this year, with the total value of on-chain RWAs rising 58% to nearly $25 billion. Ethereum still dominates this space as it accounts for 55% of all tokenized RWAs, which are primarily composed of private credit and US Treasurys.
