tl;dr
On October 5, 2025, 21Shares filed with the SEC for a Hyperliquid ETF (HYPE), following Bitwise's September proposal. The fund, partnering with Coinbase and BitGo, highlights institutional interest in crypto. Over 90 crypto ETF applications are under review, including ones for Solana, Cardano, and X...
**21Shares Files for Hyperliquid ETF, Joining Bitwise in Crypto ETF Surge**
Exchange-traded fund (ETF) provider 21Shares has taken another step in expanding its crypto offerings, filing with the U.S. Securities and Exchange Commission (SEC) for an ETF tracking the native token of the decentralized exchange Hyperliquid, known as HYPE. This move follows a similar proposal by Bitwise Asset Management in September, positioning the 21Shares Hyperliquid ETF as the second HYPE-focused ETF seeking approval for U.S. trading.
The proposed fund would leverage Coinbase, America’s largest crypto exchange by trading volume, and digital asset custodian BitGo to safeguard its holdings. This partnership underscores the growing institutional interest in crypto assets, as well as the need for secure infrastructure to support retail and institutional investors.
The filing arrives amid a surge in crypto ETF applications, with the SEC reviewing over 90 proposals for funds targeting a variety of altcoins, including Solana, Cardano, XRP, and Dogecoin, as well as diversified token strategies. While the regulatory landscape remains cautious, the increasing number of applications reflects a broader shift toward mainstream acceptance of digital assets.
Hyperliquid, a decentralized exchange (DEX) specializing in perpetual futures trading, allows users to trade digital assets with enhanced liquidity and lower fees. Its native token, HYPE, currently ranks as the 16th largest digital asset with a market capitalization of $12.7 billion, according to CoinGlass. Recent data from CoinGecko shows HYPE trading at $47.55, marking a 2.7% rise over the past 24 hours and a 32% increase over the past week.
The 21Shares filing includes a disclaimer highlighting the unique risks associated with digital assets: “HYPE is a digital asset. Like all digital assets, buying, holding and selling HYPE is very different from buying, holding and selling more conventional investments like stocks and bonds.” This statement aligns with the SEC’s ongoing scrutiny of crypto products, emphasizing the need for investor education and risk management.
The momentum for crypto ETFs has been bolstered by the success of Bitcoin and Ethereum-focused funds, which have attracted over $155 billion and $23.4 billion in assets, respectively, since their approvals last year. These products have provided traditional investors and institutions with a more accessible and regulated way to gain exposure to digital assets, mitigating concerns around security, complexity, and tax implications.
As the SEC continues to evaluate crypto ETF applications, the approval of funds like 21Shares’ Hyperliquid ETF could signal further normalization of digital assets in the financial system. With regulatory clarity and investor demand evolving, the crypto market remains a focal point for innovation and opportunity in the broader financial landscape.