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Ondo Finance's Native Token ONDO Soars on ETF Announcement
ONDO, the governance token powering the decentralized finance protocol Ondo Finance, experienced a significant boost in investor interest following a major ETF development. The surge comes in the wake of 21Shares, a prominent digital asset management firm, submitting an S-1 registration to the U.S. Securities and Exchange Commission (SEC) for the 21Shares Ondo Trust on July 22, 2025. The newly proposed spot ETF is designed to hold ONDO tokens exclusively, tracking its value through the CME CF Ondo Finance-Dollar Reference Rate.
Fully-Backed Spot ETF Brings Institutional Attention to ONDO
Unlike traditional funds, the proposed 21Shares Ondo Trust would be physically backed—meaning all ETF shares are fully collateralized by ONDO tokens held in secure custody at Coinbase Custody. This structure mirrors successful spot Bitcoin and Ethereum ETFs, offering a transparent, passive investment approach. It excludes the use of leverage, derivatives, or active trading, aiming for price performance that accurately reflects ONDO's underlying value, after accounting for fees and administrative costs.
Market Reaction: ONDO Price and Trading Volumes Spike
The ETF news had an immediate impact on the ONDO markets. ONDO's price surged nearly 8% over the past 24 hours, rising sharply from an intraday low of $1.02 to a peak of $1.16—a remarkable 13.7% session swing—before stabilizing around $1.12. Correspondingly, trading volumes jumped 16% to reach $426 million, signaling renewed momentum as earlier losses from a broader crypto market correction were quickly recovered.
The optimism generated by the ETF proposal coincides with a broader rally in real-world asset (RWA) tokens and recent ecosystem developments. Over the past week, ONDO has gained roughly 20%, extending an impressive monthly surge of 65%. Strategic partnerships and positive protocol updates have bolstered investor confidence, and the latest ETF filing could further accelerate ONDO’s adoption and price trajectory.
Next Steps: SEC Review and Future Implications
The next major milestone will be the SEC’s comprehensive review of the 21Shares Ondo Trust filing—a process that could take several months, given the complexity of crypto ETF approvals. Regulatory evaluation will focus on liquidity factors, market manipulation risks, and custody safeguards, all of which are crucial criteria for altcoin ETF authorization. With competing proposals for other cryptocurrency ETFs already in the pipeline, timelines could be extended.
Nonetheless, Ondo Finance finds itself well-positioned. Recent milestones—including the acquisition of broker-dealer Oasis Pro and support from leading venture investors—place Ondo ahead of many RWA competitors. If the ETF is approved, it could significantly broaden ONDO’s reach, attracting greater liquidity from institutional investors and potentially driving further price appreciation.
Technical Analysis: ONDO Maintains Strong Upward Momentum
From a technical standpoint, ONDO is maintaining bullish momentum, trading consistently above its 20-, 50-, and 100-day exponential moving averages. Having found resistance at $1.16, the token is consolidating near $1.11, with the key support areas identified at $1.05 and $0.95, the latter of which aligns with the rising 20-day EMA. A decisive breakout above $1.16 could open the path towards new highs in the $1.25–$1.35 range.
Despite a robust trend, the Relative Strength Index (RSI) currently stands at 73.4, placing ONDO in the overbought territory and hinting at a potential short-term retracement. However, the prevailing technical trends and market sentiment remain positive, signaling that ONDO could sustain its upward trajectory as regulatory and institutional interest intensifies.
Source: crypto
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