- 21Shares submitted an S-1 registration to the SEC on October 29 for the HYPE ETF targeting Hyperliquid’s token.
- The ETF aims to track the native digital asset of Hyperliquid and plans to stake between 70% and 90% of its holdings.
- The fund avoids leverage and derivatives, operating as a passive investment vehicle.
- Trading volumes of recent altcoin ETFs, like Bitwise’s Solana ETF, show strong market demand.
- More than 150 crypto ETF filings are under SEC review, reflecting growing institutional interest in altcoin exposure.
On October 29, Swiss asset manager 21Shares filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for the HYPE ETF. The fund is designed to track Hyperliquid’s native token and seeks approval amid rising institutional demand for altcoin ETFs.
The ETF will operate as a passive investment trust without using leverage or derivatives. Custodians named in the filing include CSC Delaware Trust Company, Coinbase Custody, and BitGo Trust Company. The fund plans to stake a significant portion of its assets, typically between 70% and 90% of the HYPE tokens it holds, to earn additional returns.
Recent market activity highlights strong investor interest in altcoin ETFs. For example, Bitwise’s Solana ETF (BSOL), which launched on October 28, traded $56 million on its first day and $72 million on the second day. Other recent debuts include the Hedera ETF (HBR) by Canary Capital, which traded $8 million, and the Litecoin ETF (LTCC), which posted $1 million in trading volume.
According to Bloomberg’s senior ETF analyst Eric Balchunas, “HBR and LTCC did about the same as their Day One ($8 million and $1 million respectively), which is still strong (most ETFs drop after day one hype is over).” He also commented on the 21Shares filing, saying “This is the kind of filing where you’re like man, that is SO niche, idk.. but then you could look up in 3-4yrs it’s got a few billion. Just a total land rush right now, just like with themes, curr hedging and smart beta in eras past.”
The growing number of crypto ETF filings in 2025, now surpassing 150 under SEC review, indicates increased institutional appetite for altcoin exposure beyond Bitcoin and Ethereum. 21Shares joins other firms such as Bitwise and VanEck in seeking regulatory approval. The outcome will depend on the SEC’s assessment of custody arrangements and market structure.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Hedera Joins Bank of England’s DLT Innovation Challenge for 2025
- New Research Reveals Optimal Multi-Signature Threshold for Bitcoin Security
- SpaceX Moves 281 Bitcoin Amid Flurry of Recent Transfers
- Tesla Recalls 6,197 Cybertrucks Over Light Bar Detachment Risk
- Bitcoin Plummets After Fed Rate Cut Amid Powell’s Hawkish Tone
