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CME, ICE Seek Stricter Hyperliquid Oversight

Hyperliquid's Hype token surges 5% on ETF launch despite regulatory pressure and falling crypto market.

  • Hyperliquid’s HYPE token surged over 5% despite market-wide losses, buoyed by the launch of the Bitwise Hyperliquid ETF (BHYP) on the New York Stock Exchange.
  • Retail sentiment around Hyperliquid flipped to ‘bullish’ on Stocktwits even as Bloomberg reported that CME Group and ICE are pushing for increased regulatory scrutiny of the platform.
  • According to the report, the exchanges warned the Commodity Futures Trading Commission about risks tied to anonymous trading, including potential market manipulation.
  • The performance in HYPE, which is up over 82% this year, notably outperformed a declining broader cryptocurrency market, which fell 2.2% on Friday.

On Friday, May 15, the digital asset Hyperliquid (HYPE) rallied over 5% after Bitwise launched its Hyperliquid ETF on the New York Stock Exchange. However, this surge occurred alongside renewed pressure from legacy exchanges seeking greater regulatory oversight of the platform amid a broader crypto market decline.

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Bloomberg reported that CME Group and Intercontinental Exchange (ICE) urged U.S. regulators to tighten scrutiny. Consequently, they expressed concerns to the CFTC about the Singapore-based platform’s anonymous trading environment potentially enabling market manipulation. Meanwhile, retail sentiment on platforms like Stocktwits shifted dramatically to ‘bullish’ for the first time in days.

The ETF launch served as a significant bullish catalyst for HYPE tokens. Bitwise pointed to the platform’s $4.4 trillion cumulative trading volume and its capacity to process roughly 200,000 orders per second. “Hyperliquid’s rise over the past few years is the stuff of legend,” the asset manager stated in its announcement.

This defiance occurred as the overall cryptocurrency market tumbled over 2.2%, according to data. Major assets like Bitcoin and Solana led the losses during Friday’s session. Therefore, HYPE’s 82% year-to-date gain starkly contrasts with Bitcoin’s drop of over 8% in the same period.

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