TLDR
- 21Shares has submitted an application to the SEC for a new Hyperliquid ETF.
- The proposed ETF will track the HYPE token which powers the Hyperliquid decentralized exchange.
- Coinbase and BitGo will serve as custodians for the digital assets held by the ETF.
- The Hyperliquid ETF would be the second HYPE-focused ETF proposal after Bitwise’s filing in September.
- Hyperliquid is a decentralized exchange that specializes in perpetual futures trading for digital assets.
21Shares has filed an application for a Hyperliquid ETF with the U.S. Securities and Exchange Commission. The proposed Hyperliquid ETF would track the HYPE token, the native asset of the Hyperliquid decentralized exchange.
Hyperliquid ETF Filing Confirms Custodians Chosen
21Shares submitted its Hyperliquid ETF proposal to the SEC on Wednesday. The ETF would give investors exposure to the HYPE token through regulated financial channels. The application confirms Coinbase and BitGo as custodians of the Hyperliquid ETF’s digital asset holdings. This approach aligns with industry trends favoring regulated custody services to reduce security risks.
The Hyperliquid ETF would become the second proposed ETF focused on HYPE. Bitwise filed a similar application in September, seeking SEC approval for its own HYPE ETF. According to the filing, “HYPE is a digital asset. Buying and selling it differs from traditional investments.” This language mirrors standard SEC ETF filing disclosures for crypto-based products.
Hyperliquid’s Growth Fuels Investor Interest
Hyperliquid operates as a decentralized exchange, or DEX, offering perpetual futures trading for digital assets. Users can access the platform directly to trade without intermediaries or traditional account setups.Its native token, HYPE, has become the 16th largest digital asset by market capitalization. CoinGlass data shows HYPE’s market cap at $12.7 billion as of the latest reporting period.
CoinGecko listed HYPE at $47.55 on Wednesday. The token rose 2.7% in 24 hours and 32% over the past seven days. This recent price surge has likely contributed to increased institutional interest in a Hyperliquid ETF. The fund would allow investors to trade shares without directly handling digital tokens.
Crypto ETF Market Expands With New Applications
21Shares joins over 90 applicants seeking approval for crypto ETFs across multiple digital assets. The SEC continues to review proposed ETFs involving coins such as Solana, Cardano, XRP, and Dogecoin.
Asset managers are leveraging a more open regulatory environment for crypto-focused investment products. This shift follows last year’s approvals of Bitcoin and Ethereum-based ETFs. Bitcoin ETFs now manage over $155 billion in assets. Ethereum ETFs have reached $23.4 billion in assets, most of it in the past four months.
Hyperliquid ETF’s entry highlights increasing demand for altcoin exposure through stock exchange-traded funds. The SEC has not yet provided a decision date for the 21Shares Hyperliquid ETF application.
