21Shares filed with the SEC to launch a Hyperliquid ETF, offering regulated exposure to the profitable HYPE token ecosystem.
21Shares recently submitted a Form S-1 registration to the U.S. Securities and Exchange Commission (SEC). The filing proposes the creation of 21Shares Hyperliquid ETF immediately. If approved, this exchange-traded fund will allow regulated access to Hyperliquid’s ecosystem now. Furthermore, it offers exposure to the native HYPE token directly. This proposition brings new instability to institutional interest in crypto now.
The ETF news comes as there is a great rush in new crypto fund filings. Therefore, the renewed institutional interest in the crypto sector is experiencing a revival worldwide. Hyperliquid works as a high-performance Layer 1 (L1) blockchain specifically. This network is created for very active trading of decentralized perpetual futures. Thus, the protocol is one of the top places for on-chain derivatives these days.
In fact, the platform has shown outstanding profitability all the time. For instance, it registered more than $278.9 billion in perpetual trading volume for October to date. This enormous activity contributed to almost $105.2 million in fees for the same period. As a result of this, these metrics make Hyperliquid one of the most profitable protocols out there. This performance gives a huge attraction to the institutions.
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The proposed ETF is a passive investment vehicle at this point. It aims to directly track the price performance of HYPE. The adjustment in the price will be made only effectively for the operating expenses of the fund. Moreover, the fund may also indicate rewards from staking a portion of its holdings of HYPE. This staking feature provides an additional layer of possible yield.
What’s more, HYPE token is the native asset of the Hyperliquid network specifically. The token is mostly utilized for the active purpose of staking and also governance. Furthermore, Hyperliquid is consistently using their high daily fee to buyback HYPE. This issue of tokens provides a strong case for traditional valuation methods. Therefore, analysts can use familiar financial models.
But this 21Shares proposal is facing competition in the market now. Another major asset manager, Bitwise, filed for its own Hyperliquid ETF previously. More specifically that proposal was submitted in September 2025 actively. The competition reflects the high perceived value of the Hyperliquid ecosystem in its totality. Therefore, companies are scrambling to get to this market first.
The filing comes in the aftermath of a huge wave of interest in all things crypto consistently. There are multiple asset managers that are launching ETFs tracking different cryptocurrencies now. Nevertheless, the SEC is still operating with limited staff is active. This is attributed to an ongoing US government shutdown constantly. As a result, the regulatory review and approval timeline could be delayed.
In the last year, the HYPE token has experienced a major growth in the market on a regular basis. Some reports have put to show a price surge of more than 1500% dramatically. This superb performance is the driving force in the urgency of the ETF filings. Therefore, institutional investors are looking for compliant exposure to this growth. The fund seeks to address this critical demand head-on.
At the end, the 21Shares proposal is a very important milestone now. It drives decentralized perpetual trading to the regulated financial world head-on. If approved, the ETF will give legitimacy to the high performance DeFi sector greatly. Therefore, it offers a new and sought-after investment avenue. The financial world is waiting for the decision of the SEC eagerly.
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