21Shares, a leading crypto asset management firm, has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch the exchange-traded fund (ETF) tracking Hyperliquid (HYPE) token. The proposed ETF aims to provide investors with exposure to Hyperliquid’s price performance and staking yields without requiring direct ownership of the HYPE token.
The filing, accepted by the SEC on October 29, 2025, marks a pivotal step toward integrating Hyperliquid’s innovative DeFi ecosystem into regulated financial markets. While Hyperliquid is witnessing a notable growth as a leading perpetual DEX, 21Share’s filing has further fueled optimism for the platform’s market presence.
The move aligns with a broader trend of growing institutional interest in crypto ETFs. Recent data from SoSoValue indicates that the U.S.-listed spot Bitcoin and Ethereum ETFs recorded substantial inflows this month, exceeding $4.57 billion as of October 29.
Fuelling Hyperliquid’s growth
As per the filing, 21Shares plans to utilize derivative instruments such as swap agreements and options, alongside potential spot HYPE exchange-traded products (ETPs), to achieve its investment objectives. This structure mirrors Hyperliquid’s on-chain market dynamics, including its perpetual futures and fee mechanisms, while adhering to SEC regulatory standards.
Earlier this month, 21Shares filed a 2X Leveraged ETF for HYPE, suggesting the asset manager’s bullish stance on the cryptocurrency.
Hyperliquid has emerged as a dominant player in the decentralized finance (DeFi) landscape in 2025, boasting trading volumes exceeding $3 trillion, as per Hyperliquid stats. Its fully on-chain perpetual exchange, built on a custom Layer 1 blockchain, offers zero gas fees and exceptional scalability, positioning it ahead of competitors like Aster and Lighter.
Hyperliquid’s success is attributed to its optimized architecture, which addresses key DeFi challenges such as speed, cost, and transparency. This ETF filing could serve as a catalyst for institutional adoption, potentially unlocking significant capital inflows into Hyperliquid’s ecosystem.
SEC’s upturn stance on crypto ETFs
The SEC’s recent approval of generic listing standards for spot crypto ETFs has streamlined the approval process. With this update, the ETF review timeline shrinked from 240 days to a maximum of 75 days. This regulatory shift, coupled with the U.S. President Donald Trump’s administration’s push to mainstream crypto assets, has paved the way for products tracking assets like Solana and XRP, with Hyperliquid now joining the fray.
Also read: Bitwise to Launch Solana ETF Featuring Staking Rewards
