21Shares has submitted a filing to the U.S. Securities and Exchange Commission (SEC) seeking approval for the 21Shares 2x Long HYPE ETF, a leveraged exchange-traded fund designed to deliver twice the daily returns of the Hyperliquid (HYPE) DeFi token. If approved, it would become the first U.S.-listed leveraged ETF tracking the fees and perpetual market performance of a live decentralized finance protocol.
According to the filing dated October 16, the proposed fund aims to mirror two times the daily performance of HYPE, before fees and expenses, through a mix of swap agreements, options, and potentially spot HYPE exchange-traded products (ETPs)—though no such U.S.-based spot ETPs currently exist.
Unlike traditional crypto funds that hold underlying tokens, the ETF will employ swap derivatives to gain leveraged exposure to HYPE’s perpetual futures system, resetting daily to maintain its 2x leverage target. This structure offers investors access to the DeFi market’s growth without direct token custody.
Meanwhile, other major asset managers, including Bitwise, have also filed for spot HYPE ETFs, underscoring rising institutional interest in regulated exposure to DeFi assets.
HYPE ETF buzz fails to lift token
Despite the announcement, HYPE’s price continues to face downward pressure. Trading near $34, the token has fallen roughly 10% in the past 24 hours, according to data from crypto.news. On the daily chart, HYPE is testing a key support zone between $34 and $35, following a sharp pullback from recent highs—a decline that mirrors the broader crypto market correction after last week’s $19.3 billion liquidation event.
Although HYPE briefly rebounded to $43.24 following the rollout of the HIP-3 upgrade earlier in the week, the bullish momentum quickly faded. The 30-day simple moving average (SMA) is currently hovering around $45.27, well above the current price — highlighting persistent weakness and confirming that HYPE remains in a bearish trend.
Technical indicators also point to continued downside pressure. The Moving Average Convergence Divergence (MACD) shows a bearish crossover, with the MACD line at –3.19, sitting below the signal line at –2.27. This suggests that sellers are firmly in control, and the presence of increasingly negative histogram bars indicates that bearish momentum is still building.
If HYPE fails to hold the key support zone between $34 and $35, the token could decline further toward the $30 level. Conversely, a rebound above $37.50 could hint at a potential trend reversal, though such a move would require strong buying pressure to overcome the current resistance zone.
