TLDR
- Bitwise filed S-1 form for Hyperliquid ETF seeking direct HYPE token exposure
- HYPE trades at $42 with technical analysis targeting $55 price level
- Hyperion DeFi purchased $10M worth of tokens for treasury expansion
- Aster DEX surpassed Hyperliquid in trading volume with $35.8B daily activity
- ETF needs Form 19b-4 filing before 240-day SEC approval process begins
Bitwise Asset Management submitted an S-1 registration form to launch a spot Hyperliquid ETF tracking HYPE token performance. The filing marks the first institutional attempt to bring HYPE exposure to traditional markets through an exchange-traded fund structure.
The proposed Bitwise Hyperliquid ETF would directly hold HYPE tokens and offer in-kind redemptions. This allows investors to exchange fund shares for actual tokens rather than cash settlements. The SEC approved in-kind creation mechanisms for crypto ETFs in July 2024, reducing costs and improving efficiency.
However, the filing lacks key details including trading exchange, ticker symbol, and management fees. Bitwise must still submit Form 19b-4 to initiate the formal SEC review process, which can take up to 240 days.
The application faces regulatory hurdles since no HYPE futures contracts trade on CFTC-regulated exchanges. Recent SEC standards favor crypto assets with six months of regulated futures trading history for faster approvals.
Technical Analysis Points to Recovery Zone
Market analyst Ali Charts identified HYPE trading within a crucial support zone at current $42 levels. The technical analysis suggests potential upward movement toward $55 if support holds firm.
HYPE has tested Fibonacci retracement levels multiple times, establishing a solid technical foundation. The token shows consolidation patterns within a stable trading channel despite recent volatility across crypto markets.
Previous analysis from CoinGape outlined a potential $72 price target, supporting the bullish technical outlook. The current price action aligns with the analyst’s earlier projections for recovery from support zones.
Competition Threatens Market Leadership
Aster DEX emerged as a major threat to Hyperliquid’s dominance in perpetual futures trading. The BNB Chain-based platform recorded $35.8 billion in daily volume, tripling Hyperliquid’s $10 billion over the same period.
Aster’s open interest surged to $1.15 billion from under $143 million in just days. The rapid growth demonstrates shifting competitive dynamics as new platforms capture market share from established players.
Total DEX perpetual trading volumes reached an all-time high of $70 billion while HYPE open interest declined 1.85% to $2.2 billion. The token price dropped 3.5% during the same period, reflecting competitive pressure.
Institutional support continues through Hyperion DeFi’s $10 million treasury expansion, bringing total holdings above 1.7 million tokens. This institutional backing provides stability as market dynamics shift.
Hyperliquid (HYPE) Price Prediction
HYPE price prediction remains cautiously optimistic despite rising competition. The $42 support level represents a critical juncture for future price action, with technical indicators suggesting potential recovery to $55 levels.
Institutional interest through ETF filing and treasury purchases provides fundamental support. However, the token must maintain market share against aggressive competitors to sustain long-term growth prospects.
