Introduction to the Hyperliquid ETF
In a move reflecting increasing Wall Street interest in alternative cryptocurrencies, asset manager 21Shares is planning to launch an exchange-traded fund (ETF) linked to the token behind Hyperliquid, a decentralized protocol for perpetual futures trading. This upcoming ETF aims to tap into the growing popularity of DeFi tokens and blockchain-based assets, signaling a broader institutional push into crypto markets and innovative financial products.
Key Developments in Crypto ETFs
21Shares has filed for an ETF targeting Hyperliquid’s governance token, with Coinbase Custody and BitGo Trust serving as custodians. The Hyperliquid token, used for fee payments and offering discounts on its decentralized exchange (DEX), has gained value over the past year amid rising usage. This filing follows Bitwise’s recent Spot Hyperliquid ETF proposal, indicating strong interest in decentralized finance (DeFi) assets among institutional investors. Meanwhile, Bitwise’s Solana Staking ETF (BSOL) surged to over $72 million in trading volume during its second day, reflecting robust demand for blockchain-based yield products. Other institutional players, such as Grayscale, are also entering the staking ETF space, underscoring increasing mainstream engagement with crypto assets.
21Shares' ETF Filing Details
As Wall Street increasingly embraces alternative cryptocurrencies, asset manager 21Shares is preparing to launch an ETF focused on the Hyperliquid token, a DeFi asset associated with the decentralized futures protocol and blockchain. The firm filed the necessary paperwork with the Securities and Exchange Commission (SEC) on Wednesday, though details about the proposed ticker and fees remain undisclosed. Coinbase Custody and BitGo Trust have been named as custodians for the fund, signaling strong institutional backing.
This initiative follows a similar ETF proposal from Bitwise, which announced its own Hyperliquid (HYPE) ETF last month. The Hyperliquid token is utilized on its decentralized exchange to provide discounts and facilitate fee payments, and it has appreciated in value over the past year along with its platform’s rising popularity.
US investors show clear enthusiasm for ETFs tracking volatile altcoins and DeFi tokens, reflected in recent successful launches. Bitwise’s new Solana (SOL) ETF, for example, saw remarkable trading volumes just days after debut, highlighting a growing appetite for innovative crypto investment products.
Bitwise Solana Staking ETF Performance
The Bitwise Solana Staking ETF (BSOL) closed its second day of trading on Wednesday with over $72 million in volume. Bloomberg ETF analyst Eric Balchunas described the figure as “a huge number,” emphasizing that such high activity on the second day is rare, as most ETFs tend to see volume decline after initial hype.
The BSOL ETF launched alongside other blockchain-focused funds, including Canary Capital’s Litecoin (LTC) and Hedera (HBAR) ETFs. Notably, Bitwise’s SOL ETF recorded a trading volume of $55.4 million on its debut, marking it as the largest crypto ETF launch so far this year.
Meanwhile, Grayscale Investments introduced its own staking-enabled Solana Trust ETF (GSOL), which amassed $4 million in trading volume on opening day—seen as a healthy figure, though comparatively modest.
Balchunas noted, “Being just one day behind is actually really huge, and it makes the race much harder,” highlighting the rapid pace of institutional adoption and product launches in the crypto ETF space.
Broader Market Trends and Outlook
As digital assets increasingly integrate into mainstream investment portfolios, market participants are watching how these innovative ETFs evolve and attract institutional and retail investors alike, adding yet another layer to the expanding landscape of cryptocurrency markets.