Ondo Finance is back in the spotlight after a major development in the institutional investment landscape. 21Shares, a prominent issuer of crypto exchange-traded products (ETPs), has submitted a preliminary application to the US Securities and Exchange Commission (SEC) for a spot ETF that would track the performance of ONDO, the native token of the decentralized finance platform. This move marks a significant step toward mainstream exposure for the protocol and its token, signaling growing institutional interest in DeFi-focused assets.
The announcement has already impacted the market, with the price surging past the $1.16 level shortly after the news broke. While the price has since retraced slightly, this reaction highlights the sensitivity of crypto assets to regulatory milestones and investor sentiment. The broader market’s current volatility has limited the upside for now, but the ETF filing could pave the way for renewed strength as the narrative gains traction.
As legal clarity and institutional demand converge, ONDO is positioned to benefit from increased attention and capital inflows in the coming weeks. For now, all eyes are on the SEC’s response—and the potential it holds for its long-term growth trajectory.
Closer Look At The ONDO ETF Filing: Structure, Strategy, and Market Impact
The preliminary prospectus filed by 21Shares for the Ondo ETF outlines a straightforward, passive investment structure designed to track the performance of ONDO without engaging in active trading or speculation. Formally known as the 21Shares Ondo Trust, this exchange-traded fund will issue Shares that reflect the value of the native token of the Chain.
The Trust aims to mirror the price as measured by the CME CF Ondo Finance-Dollar Reference Rate (New York Variant), which aggregates executed trade data from major exchanges. Importantly, the ETF will not use leverage, derivatives, or speculative timing to enhance returns. Instead, it will simply hold ONDO tokens, valuing them daily based on the Pricing Benchmark.
Coinbase Custody will act as the custodian, securely holding the token on behalf of the Trust. Shares will be created or redeemed in large blocks (Baskets) either through in-kind ONDO transfers or in cash via authorized participants.
If approved, the Trust could significantly increase ONDO’s legitimacy in traditional finance circles, potentially boosting liquidity and demand while maintaining alignment with US regulatory expectations.
Retracement After Hitting Multi-Month High
The daily chart shows a sharp breakout above the key resistance near $1.00, followed by a healthy retracement toward $1.07. This move came after ONDO surged to a high of $1.14 on increased volume, driven by optimism around the 21Shares ETF filing. The price is now consolidating above all major moving averages — the 50-day ($0.84), 100-day ($0.88), and 200-day ($0.99) — signaling a strong shift in momentum and bullish market structure.
This recent run marks ONDO’s cleanest breakout since the downtrend that began in early 2025. The break above the 200-day SMA, in particular, is critical as it often signals a macro reversal. While the 6% intraday correction reflects broader market volatility, the price holding above the $1.00 level is a sign of strength.
The current consolidation phase between $1.06 and $1.14 could serve as a launchpad for a continuation toward $1.30–$1.40, provided the bullish narrative around institutional adoption and ETF traction holds. If the price breaks below the 200-day SMA again, support lies at the 100-day moving average and the $0.95 zone.
Featured image from Dall-E, chart from TradingView
