Asset management company Bitwise has filed for an exchange-traded fund (ETF) that will hold and track the token linked to the crypto futures protocol and blockchain Hyperliquid. According to a regulatory filing filed on Thursday, Bitwise is working to launch the Hyperliquid ETF. The fund will directly hold the Hyperliquid (HYPE) token. HYPE provides discounts on Hyperliquid's decentralized exchange (DEX) and is used to pay transaction fees on the blockchain. The filing does not yet specify which exchange the product will trade on, what symbol it will be listed under, or how much Bitwise will charge.
Bitwise Files for HYPE
Crypto asset management company Bitwise Investment Advisers has filed with the U.S. Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) that will track the Hyperliquid (HYPE) token. The filing, filed on Form S-1, is the first ETF to be offered for HYPE. Hyperliquid is a Layer-1 blockchain specifically designed for decentralized finance (DeFi) applications. Perpetual futures are the primary focus of the network, with speed, scalability, and user-centricity at the forefront. The ecosystem, which has been rapidly growing since 2021, aims to increase liquidity and transaction diversity through the HYPE token.
Bitwise's move has the potential to increase institutional interest in crypto. ETFs make it easier for individual investors to access crypto assets through regulated financial products rather than purchasing tokens directly. Such products also allow institutional investors to manage risk more transparently.
Following the application news, the price of HYPE fluctuated sharply. HYPE price rose 5 percent in the last 24 hours, trading at $42. With a circulating supply of 270.8 million units, HYPE ranks 21st in the crypto market with a market capitalization of $11 billion.
Four altcoin ETFs postponed
The ETF move is being evaluated alongside other market developments. The SEC, while reviewing the Bitwise application, postponed several altcoin ETF applications around the same time. Canary's spot SUI and PENGU funds, staked INJ and SEI funds, as well as Grayscale and VanEck's Avalanche-focused ETF proposals, are among the applications pending a decision.
The Hyperliquid ETF application has also resonated with market experts. Investor and entrepreneur Howard Lindzon, making a comparison to the venture capital era in a social media post, said, "Everyone wants to be early-stage these days, but the public markets are really where the focus should be."
Competition in the crypto ETF market is heating up. Recently, Hashdex expanded its existing ETF portfolio by adding XRP and Solana to its portfolio, in accordance with the SEC's new listing standards. Dozens of applications are currently under review, and investors are closely monitoring every new development. If Bitwise's Hyperliquid bid wins approval, it would increase the visibility of DeFi-focused Layer-1 projects and open a new avenue for institutional capital. However, the timing of the approval and the direction the SEC's overall approach will take remain unclear.
