TLDR
- Bitwise files for first Hyperliquid ETF with direct HYPE token exposure.
- New ETF aims to mirror HYPE’s value via in-kind creation and redemption.
- SEC review may face delays since HYPE futures lack CFTC registration.
- HYPE token consolidates near $41 after retreating from $60 highs.
- SEC decision could take up to 240 days; approval timeline uncertain.
Bitwise has taken a significant step toward launching the first Hyperliquid ETF, targeting direct exposure to the HYPE token. The firm submitted a Form S-1 with the SEC under the Securities Act of 1933. This move positions Bitwise to bring the HYPE token to regulated markets through an exchange-traded fund structure.
Bitwise Proposes First-Ever Hyperliquid ETF
Bitwise confirmed that the ETF will hold HYPE directly, allowing market participants access without blockchain interaction or token custody. The fund aims to mirror the token’s market value while enabling in-kind creations and redemptions. This structure permits HYPE token exchanges for ETF shares, minimizing operational frictions.
The application emphasized that HYPE lacks registered futures contracts under the Commodity Futures Trading Commission. This could complicate or delay the SEC review timeline. Nevertheless, Bitwise signaled confidence by pushing forward despite this limitation.
Bitwise did not name the exchange or ticker for the proposed ETF, nor did it disclose any fee structure. However, filing the Form S-1 marks the initial step toward full registration and possible listing. The SEC review will begin once Bitwise files Form 19b-4, which formally initiates the evaluation process.
Hyperliquid: Layer 1 Focused on Perpetuals
Hyperliquid operates as a purpose-built Layer 1 blockchain designed for decentralized finance applications. Its focus centers on high-speed, non-custodial perpetual futures trading. The HYPE token underpins the network’s functions, including fees, governance, and utility across the protocol.
The token currently ranks 21st by market capitalization, with a total value near $11 billion. It has a circulating supply of over 270 million and trades actively on crypto platforms. While its futures are unregulated, the spot token has gained significant attention among digital asset managers.
Bitwise aims to categorize HYPE with leading cryptocurrencies that have reached institutional recognition. The ETF structure follows similar models used for Bitcoin and Ethereum funds. Those funds leveraged in-kind mechanisms to reduce cost and improve trading efficiency.
HYPE Technicals Signal Short-Term Weakness
Recent HYPE price activity suggests selling pressure is increasing, with the token retreating from its $60 highs. The asset now consolidates near $42, with key support forming between $35 and $32. Analysts have noted a breakdown of a rising wedge pattern, which could imply further downside.
To reverse the trend, HYPE would need to reclaim the $45 level with sustained momentum. Otherwise, bearish continuation may push the token to test historical demand zones. The lack of a futures market could also affect liquidity and sentiment in the short term.
Despite technical setbacks, Bitwise remains firm on launching the Hyperliquid ETF. If the SEC acknowledges the filing, it could take up to 240 days for approval. Alternatively, the timeline could shorten to 75 days, though HYPE’s lack of qualifying futures disqualifies it from that pathway.
