21Shares Proposes New ETF Tied to Hyperliquid Blockchain
21Shares is making significant strides in the decentralized finance (DeFi) sector with its recent proposal for an exchange-traded fund (ETF) linked to the Hyperliquid blockchain and its native token, HYPE.
Key Highlights
21Shares has submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC) to introduce the Hyperliquid ETF, which aims to provide investors with exposure to the HYPE token. Currently, HYPE ranks as the 16th largest cryptocurrency and serves as the backbone for Hyperliquid, a Layer 1 blockchain specifically designed for DeFi applications. This proposal comes amid a surge in crypto ETF launches, including those from Grayscale and Bitwise.
Details of the Proposal
On October 29, 2025, 21Shares filed a registration statement with the SEC for the 21Shares Hyperliquid ETF. If the SEC grants approval, this fund would offer regulated access to the Hyperliquid ecosystem and its native token, HYPE. The filing includes Coinbase Custody Trust Company and BitGO Trust Company as custodians. This announcement is part of a broader trend of increasing institutional interest in the cryptocurrency market, coinciding with several new ETF applications.
21Shares Takes a Leading Role in Crypto ETF Landscape
As a prominent player in the management of exchange-traded products, 21Shares is strategically positioning itself within the evolving landscape of cryptocurrency finance. The Hyperliquid ETF application follows Bitwise’s similar initiative earlier this year and is part of a flurry of activity during October, where firms like REX Shares and Osprey Funds submitted over twenty ETF-related proposals. This development also follows the prime broker FalconX’s acquisition of 21Shares, which is anticipated to integrate FalconX’s trading capabilities with 21Shares’ expertise in exchange-traded products, potentially leading to a wider range of crypto derivatives and structured products. Recent regulatory changes have also expedited the ETF filing process, with the SEC issuing guidance that allows for ETF launches after 20 days unless a delaying amendment is made in the Form S-1.
Hyperliquid’s Strength Enhances ETF Appeal
Hyperliquid has established a reputation for its robust trading infrastructure, especially in the derivatives market, and is currently providing impressive returns. Data from RR2 Capital reveals that the protocol’s liquidity provider vault APR is at an impressive 160 percent, surpassing many other decentralized exchanges in the perpetuals market. Additionally, the overall metrics of decentralized finance are showing signs of revival, with thirteen blockchain networks each exceeding one billion dollars in total value locked (TVL). Hyperliquid’s TVL has witnessed a remarkable increase of 10.9 percent in just one week, outperforming major platforms and indicating a growing trust in DeFi protocols.
Market Optimism Fuels Price Momentum
The HYPE token has staged a strong recovery from its October lows, which were around $33, influenced by both technical indicators and fundamental developments. Analysts have identified a classic cup-and-handle chart formation, which is typically interpreted as a bullish signal. With $45 being a crucial support level and $49 marking the breakout threshold, projections are now aiming towards $60 if purchasing momentum continues. The introduction of the 21Shares ETF filing strengthens overall market sentiment, merging institutional interest with rising enthusiasm from retail investors. Additionally, Robinhood’s recent inclusion of Hyperliquid on its trading platform is expected to enhance visibility and liquidity in U.S. markets.
Insightful Takeaways
From my perspective, a well-timed ETF filing can significantly bolster confidence in any digital asset. What is particularly noteworthy about this situation is that 21Shares is not merely launching a new fund; it is doing so at a time when institutional interest in DeFi is surging. With Hyperliquid demonstrating solid fundamentals, a notable increase in TVL, and exceptional yields, it is understandable that HYPE is capturing the attention of both retail and institutional investors. The interplay between technical price trends and actual usage statistics is particularly striking. This ETF could potentially serve as a conduit, facilitating the entrance of traditional capital into the decentralized finance realm.
