Bitwise's HYPE ETF Seeks to Establish DeFi as a Recognized Player in Traditional Finance
- Bitwise files HYPE ETF proposal with SEC, offering direct token exposure via Coinbase custody and in-kind creation. - HYPE token's $11B market cap and DeFi governance role position it as a non-Bitcoin/Ethereum ETF asset candidate. - SEC's in-kind redemption approval enhances efficiency, but altcoin ETF approvals remain pending amid regulatory scrutiny. - Hyperliquid faces DEX competition from Aster (358% volume surge) as traders seek MEV-mitigation tools and multi-chain support.

Bitwise Investment Advisers has submitted an S-1 registration to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that would offer direct investment in Hyperliquid’s native token, HYPE. The ETF, set up as a Delaware statutory trust, will be physically backed by HYPE tokens, which will be held in custody by
Hyperliquid is a Layer 1 blockchain tailored for decentralized finance (DeFi), known for its robust perpetual futures trading. The HYPE token, which provides governance rights and trading fee discounts, has a circulating supply of 270.8 million and a market cap of $11 billion, making it the 21st largest cryptocurrency The Block [ 1 ]. Despite its size, HYPE has experienced price swings, dropping 11% in the 24 hours before the ETF filing The Block [ 1 ], then rebounding 4% to $42.50 after the news Blocknews.com [ 2 ]. Experts see the ETF as a significant step for decentralized perpetuals, potentially boosting HYPE’s liquidity and establishing it as a noteworthy ETF asset beyond Bitcoin and Ethereum Blocknews.com [ 2 ].
This filing comes as competition intensifies among decentralized exchanges (DEXs) specializing in perpetual futures. Hyperliquid’s 24-hour trading volume recently dropped to $10.1 billion, while Aster, a new
Regulatory changes have also transformed the crypto ETF sector. The SEC’s approval in July 2025 of in-kind creation and redemption for crypto ETPs marks a shift from previous cash-only approaches, reducing operational hurdles and tax issues for institutional players. Bitwise’s HYPE ETF proposal takes advantage of these new rules, aiming to align with established practices for commodity ETFs. The SEC is also working to simplify the approval process for crypto products, with new generic listing rules that remove the need for case-by-case reviews if assets have traded for at least six months on CFTC-regulated exchanges The Market Periodical [ 5 ].
The proposed ETF highlights Bitwise’s reputation as a pioneer in crypto asset management, broadening access to alternative tokens for both institutional and retail investors. For Hyperliquid, the fund could drive adoption by connecting DeFi-native assets with traditional financial markets. However, SEC approval is not guaranteed, as the agency has postponed decisions on several altcoin ETF applications, including spot
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum’s Fusaka Update: Enhancing Scalability While Maintaining Security
- Ethereum's Fusaka Upgrade (Dec 3, 2025) introduces PeerDAS to enhance L2 scalability via probabilistic data verification, reducing transaction costs and processing times. - Phased blob capacity expansion (6→15→21 per block) balances scalability with network stability, supported by 11 EIPs including spam resistance and gas limit adjustments. - The upgrade aims to attract developers to Ethereum's ecosystem by lowering L2 fees, while addressing revenue challenges through DeFi integration and testnet validat

Bitcoin Futures Market Locked in Tug-of-War: A Fragile Balance Between Bulls and Bears
- Bitcoin perpetual futures show near 50/50 long/short ratio, indicating market equilibrium and cautious trader positioning. - Exchange data reveals divergent sentiment: Binance leans bullish (51.16% long), while Bybit and Gate.io show bearish bias. - Balanced ratios signal potential volatility, with squeeze risks and the need for combined analysis of open interest and funding rates. - Market awaits catalysts like regulation or adoption to break neutrality, offering range-trading opportunities amid fragmen

World Chain Connects Blockchains to Create a Global DeFi Ecosystem Without Borders
- World Chain integrates Chainlink CCIP to enable secure cross-chain transfers of WLD between its Layer 2 network and Ethereum via the CCT standard. - The partnership combines CCIP with Chainlink Data Streams for sub-second financial data latency, enhancing DeFi liquidity and institutional-grade cross-chain applications. - By bridging 20+ blockchains and collaborating with protocols like Across, World Chain aims to reduce liquidity fragmentation and establish a borderless DeFi ecosystem.

Is WLFI’s Complete Buyback-and-Burn Approach Capable of Reversing a 60% Price Drop?
- World Liberty Financial (WLFI), linked to Donald Trump, executed a 100% buyback-and-burn plan approved by 99.8% of its governance community to stabilize its token price. - The strategy redirects all treasury fees from Ethereum, BNB Chain, and Solana trading to repurchase and permanently burn WLFI tokens, aiming to reduce supply and reward long-term holders. - Despite initial price drops of 60% post-launch and a failed one-time token burn, analysts predict potential 25% price recovery if buybacks are sust

Trending news
MoreCrypto prices
More








