<\/span><\/h3>\nBitwise was among the first to move aggressively in the HYPE space, filing its second S-1 amendment on April 10, 2025, just days before 21Shares. Bitwise\u2019s proposed fund will trade under the ticker BHYP on the NYSE Arca exchange. Notably, Bitwise has already disclosed a competitive annual management fee of 0.67%. Perhaps most significantly, the Bitwise application includes provisions for staking functionality. By incorporating staking, the fund aims to pass along the rewards generated by the underlying HYPE tokens to the shareholders, potentially offering a "yield-bearing" version of the ETF that could be more attractive to long-term institutional holders.<\/p>\n<\/span>21Shares (THYP)<\/span><\/h3>\nWhile 21Shares has yet to finalize its fee structure or confirm whether it will follow Bitwise\u2019s lead in offering staking rewards, the firm brings extensive experience from the European market. 21Shares has historically been a pioneer in launching diverse crypto ETPs on Swiss and German exchanges, and its entry into the HYPE race is seen as a strategic expansion of its U.S. footprint. The choice of the ticker THYP positions the product as a direct competitor to Bitwise\u2019s BHYP.<\/p>\n
<\/span>Grayscale Investments (GHYP)<\/span><\/h3>\nGrayscale, the world\u2019s largest crypto asset manager, also joined the fray with its own S-1 filing. Aiming for a listing on the Nasdaq under the ticker GHYP, Grayscale\u2019s entry ensures that all three major U.S. listing venues\u2014NYSE Arca, Cboe (often used by 21Shares), and Nasdaq\u2014will have a horse in the race. Grayscale\u2019s strategy often involves leveraging its existing trust structures, though for HYPE, it is pursuing a standard spot ETF registration from the outset.<\/p>\n
<\/span>Understanding the Hyperliquid (HYPE) Ecosystem<\/span><\/h2>\nThe institutional interest in a HYPE ETF is driven by the fundamental growth of the Hyperliquid platform. Unlike many other decentralized exchanges that operate as applications on general-purpose blockchains like Ethereum or Solana, Hyperliquid is a standalone Layer 1 blockchain optimized specifically for a high-performance order-book-based DEX.<\/p>\n
Hyperliquid specializes in perpetual swaps (perps), which are the most traded instruments in the cryptocurrency market. By providing a user experience that rivals centralized exchanges (CEXs) like Binance or Coinbase, but with the transparency and self-custody of a decentralized protocol, Hyperliquid has captured a significant share of the DeFi trading volume.<\/p>\n
The HYPE token serves multiple roles within this ecosystem:<\/p>\n
\nGovernance:<\/strong> Token holders can vote on protocol upgrades and the allocation of the ecosystem’s resources.<\/li>\nStaking and Security:<\/strong> As a Proof-of-Stake (PoS) network, the HYPE token is essential for securing the underlying blockchain.<\/li>\nUtility:<\/strong> The token is integrated into the platform\u2019s fee structures and liquidity incentives.<\/li>\n<\/ol>\n<\/span>Market Data and Performance Metrics<\/span><\/h2>\nThe demand for an ETF is further bolstered by HYPE\u2019s exceptional market performance. As of April 15, 2025, the token was trading at approximately $43, maintaining a strong upward trajectory. The asset has demonstrated significant resilience and growth:<\/p>\n
\nYear-to-Date (YTD) Performance:<\/strong> An increase of approximately 65%.<\/li>\n12-Month Performance:<\/strong> A staggering rise of approximately 182%.<\/li>\nMarket Capitalization:<\/strong> Approximately $100 billion.<\/li>\n<\/ul>\nWith a market capitalization of $100 billion, HYPE currently ranks as the 13th largest cryptocurrency by total valuation. This scale is a crucial threshold for ETF issuers; the SEC generally requires a high level of liquidity and market depth to ensure that an ETF can be traded efficiently without causing extreme price volatility in the underlying spot market. At its current valuation, HYPE has surpassed many "legacy" blockchain projects, cementing its status as a top-tier institutional-grade asset.<\/p>\n<\/span>Chronology of Key Events in the HYPE ETF Race<\/span><\/h2>\nThe timeline of filings indicates a condensed and highly competitive environment:<\/p>\n
\nEarly 2025:<\/strong> Initial S-1 filings are submitted by Bitwise and 21Shares as Hyperliquid’s trading volume begins to dominate the DEX landscape.<\/li>\nMarch 2025:<\/strong> Grayscale officially enters the race with a Nasdaq-bound S-1 filing.<\/li>\nApril 10, 2025:<\/strong> Bitwise submits its second amendment (S-1\/A), revealing a 0.67% fee and staking plans.<\/li>\nApril 14, 2025:<\/strong> 21Shares submits its second amendment, signaling continued engagement with the SEC.<\/li>\nApril 15, 2025:<\/strong> HYPE reaches a market cap of $100 billion, providing a strong fundamental argument for the necessity of a regulated investment vehicle.<\/li>\n<\/ul>\n<\/span>Broader Implications for the ETF Industry<\/span><\/h2>\nThe move toward a Hyperliquid ETF represents a shift in the "second wave" of crypto ETFs. While the "first wave" focused on digital gold (Bitcoin) and decentralized computing (Ethereum), the "second wave" is increasingly focused on specific financial infrastructure and utility protocols.<\/p>\n
If approved, a spot HYPE ETF would provide a template for other DeFi-centric assets, such as Uniswap (UNI) or Jupiter (JUP), to seek similar regulated status. It also challenges the traditional definition of "commodities" in the eyes of the SEC. Because Hyperliquid is a functional trading platform, the SEC must evaluate whether the HYPE token represents a stake in a "common enterprise" (which would classify it as a security) or a decentralized utility\/commodity.<\/p>\n
The inclusion of staking in Bitwise\u2019s filing is another pivotal point of contention. The SEC has previously expressed skepticism regarding staking within ETF structures, citing concerns over the liquidity of staked assets and the complexity of returning yields to shareholders. If the SEC allows Bitwise to include staking, it could set a massive precedent, potentially forcing 21Shares and Grayscale to amend their filings to remain competitive.<\/p>\n
<\/span>Conclusion and Outlook<\/span><\/h2>\nThe second amendment filed by 21Shares is more than just a procedural update; it is a testament to the staying power of decentralized exchange protocols in the global financial hierarchy. As the SEC continues to review these applications, the focus will likely shift to the robustness of the "Hyperliquid L1" consensus mechanism and the reliability of the price feeds used by the ETFs.<\/p>\n
For investors, the arrival of a spot HYPE ETF would democratize access to one of the fastest-growing sectors of the digital economy. It would allow pension funds, 401(k) providers, and retail investors to participate in the growth of decentralized derivatives trading without the complexities of managing private keys or navigating DeFi interfaces. As the April 2025 filings show, the infrastructure for this transition is being built in real-time, with 21Shares positioned at the forefront of this institutional evolution.<\/p>\n","protected":false},"excerpt":{"rendered":"
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