21Shares Seeks SEC Approval for Hyperliquid ETF Amid Growing Altcoin Interest

21Shares Seeks SEC Approval for Hyperliquid ETF Amid Rising Altcoin Interest

Swiss asset management firm 21Shares has applied to the U.S. Securities and Exchange Commission (SEC) for the approval of a Hyperliquid (HYPE) exchange-traded fund (ETF), catering to the increasing demand for altcoin-related investment products among institutional investors.

Key Takeaways:

21Shares is seeking SEC approval for a fund that will track the HYPE token, highlighting a growing institutional interest in altcoins.
Asset management company Bitwise has also filed for a similar ETF.
Increased trading volumes in new ETFs for Solana, Litecoin, and Hedera indicate Wall Street's growing interest in altcoin products.

In the application submitted on Wednesday, the proposed 21Shares Hyperliquid ETF intends to track the native token of the Hyperliquid perpetual futures protocol and blockchain.

While the filing did not disclose a specific ticker symbol or management fee, it named Coinbase Custody and BitGo Trust as custodial partners.

Competition Sparks Among Asset Managers to Launch Hyperliquid ETFs

This announcement follows a similar announcement by Bitwise, which seeks to introduce a Hyperliquid ETF, highlighting the fierce competition among asset managers aiming to meet the demand for decentralized trading ecosystem exposure.

The HYPE token supports Hyperliquid’s decentralized exchange, providing users with fee discounts and functioning as the gas token for the blockchain. This year, HYPE’s price has been steadily increasing, reflecting the protocol’s growing trading volume and expanding user base.

The filing emerges as there is a notable rise in Wall Street's interest in altcoin-based ETFs.

Recently, Bitwise’s Solana Staking ETF (BSOL) has received significant market attention, achieving $72 million in trading volume just two days after its launch, as reported by Bloomberg’s Eric Balchunas, who described this as a “huge number” indicative of strong ongoing investor engagement.

BSOL debuted alongside Canary Capital’s Litecoin (LTC) and Hedera (HBAR) ETFs, with the former reporting $55.4 million in its first-day trading, marking it as the largest crypto ETF launch of 2025.

In addition, Grayscale has entered the market with the Grayscale Solana Trust ETF (GSOL), which started trading with $4 million in volume on Wednesday. Although this launch was smaller than Bitwise’s, Balchunas called GSOL’s performance “healthy” given the circumstances.

The SEC's assessment of 21Shares' Hyperliquid ETF will be critical in determining whether another altcoin-focused product can join the expanding list of U.S.-listed crypto ETFs in 2025.

Bitcoin ETFs Face $470M Outflows as BTC Falls Below $110K Post-Fed Rate Cut

U.S.-listed spot Bitcoin ETFs saw $470 million in outflows on Wednesday, which marked their worst performance of the week as Bitcoin briefly dipped to $108,000 before making a recovery, as noted by Farside Investors.

Leading the withdrawals was Fidelity’s FBTC with $164 million, followed closely by ARK Invest’s ARKB at $143 million and BlackRock’s IBIT at $88 million.

These outflows followed two strong days earlier this week when ETFs collectively drew in over $350 million.

Cumulative net inflows now stand at $61 billion, with assets under management decreased to $149 billion, which constitutes approximately 6.75% of Bitcoin’s market capitalization, according to SoSoValue.

Bitcoin’s price movements have echoed the ETF outflows, fluctuating between $108,201 and $113,567 over the last 24 hours.

This decline occurred despite a 25 basis-point rate cut from the U.S. Federal Reserve; however, sentiment improved slightly after a meeting between U.S. President Donald Trump and Chinese President Xi Jinping helped ease trade tension concerns among investors.