Ondo Gains 5% as ETF Filing Sparks Investor Interest

Ondo attracted renewed interest after news emerged about an ETF filing that placed it in the spotlight. After steady gains, the market responded swiftly when 21Shares filed an S-1 registration with the U.S. Securities and Exchange Commission for a spot ETF tied to Ondo. This development has inspired investors, driving a marked rise in ONDO’s price and drawing more attention to its ecosystem.

ETF Filing Drives Market Interest

On July 22, 2025, 21Shares revealed its plan for the 21Shares Ondo Trust, a spot exchange-traded fund designed to track Ondo’s price through the CME CF Ondo Finance-Dollar Reference Rate. What sets this proposal apart is its fully physical backing: the trust would hold ONDO tokens directly, secured by Coinbase Custody. This approach echoes the issuer’s spot Bitcoin and Ethereum ETFs, offering a straightforward, passive investment option that mirrors the token’s performance without employing leverage or derivatives.

The market reacted with enthusiasm. ONDO climbed nearly 5% within a day, moving from an intraday low of about $1.02 to a high near $1.16. Although it has pulled back slightly since then, the token still shows gains. This positive movement was supported by a trading volume increase of over 22%, reaching $424 million. The rise reflects growing interest in tokenized assets, a market that has grown 58% so far this year and is now worth close to $25 billion.

Importantly, if approved, the Ondo ETF would mark a milestone as the first fund tracking an ERC-20 token, providing regulated exposure to Ondo’s expanding real-world asset (RWA) ecosystem. This sector has attracted considerable attention, as investors seek alternatives to traditional financial products, aiming for transparency and liquidity in tokenized real-world holdings.

What the Approval Process Means?

The future depends largely on the SEC’s review, a process that is both thorough and unpredictable. The commission will focus on important areas such as liquidity rules, risks of market manipulation, and custody protections. These elements are critical for crypto ETFs. Considering the complexity involved and the SEC’s careful approach, this review may take several months to complete.

Ondo Finance enters this phase with notable advantages. The recent acquisition of broker-dealer Oasis Pro enhances its regulatory credentials, while strong backing from venture capital firms lends additional credibility. These developments position Ondo more favorably compared to many peers in the RWA space, which often struggle with institutional adoption.

If the ETF gets approved, it could allow big investors and institutions that have avoided tokens like ONDO to start investing. This might increase liquidity a lot, which could help raise the token’s price and support the growth of the ecosystem. This shows a bigger trend of tokenized financial products becoming more popular.

Technical Strength and Price Outlook

From a technical perspective, ONDO shows signs of resilience amid heightened volatility. The token currently trades above its key moving averages, suggesting an ongoing bullish trend. Support is solid near $1.05, with a secondary cushion around $0.95, closely tied to the 20-day EMA’s trajectory.

There is resistance near $1.16 that ONDO has tested but not clearly broken. If it moves above and stays there, the price could rise to $1.25 or $1.35. The Relative Strength Index (RSI) is about 79, showing it is overbought and might need a short pause. But this high RSI also means the buying pressure is strong, so any fall may be short before the price moves up again.

This technical picture, combined with fundamental news, paints a cautiously optimistic outlook. Investors should expect some volatility but remain alert to signs that the ETF approval process and broader market interest continue to favor ONDO.

What’s Next for Ondo?

Ondo’s recent price surge underscores the potent influence of regulatory developments on token markets. The 21Shares ETF filing has injected fresh energy into the token, highlighting the growing appeal of real-world asset tokens within the regulated investment landscape.

Although the SEC’s decision is still pending and may take some time, Ondo Finance’s strategic actions and strong support create a solid base for ongoing growth. ONDO’s future path will probably rely on both regulatory results and its capacity to sustain technical resilience during market changes.