BREAKING: Bitwise Files for SEC Approval on Game-Changing Spot Hyperliquid ETF

Wall Street's crypto invasion accelerates as Bitwise drops regulatory paperwork for what could become the first spot Hyperliquid ETF.

THE REGULATORY GAMBIT

Bitwise just fired the starting pistol in the race for Hyperliquid legitimacy. Their SEC filing signals a bold push to bring decentralized perpetual trading to mainstream portfolios—bypassing traditional finance's usual gatekeepers.

WHY THIS MOVES THE NEEDLE

This isn't just another crypto fund. Hyperliquid's infrastructure represents the bleeding edge of DeFi sophistication. Approval would mark the first time retail investors get pure exposure to decentralized perpetual trading without wrestling with wallets or gas fees.

THE INSTITUTIONAL ENDGAME

Asset managers are scrambling to claim territory in the $2T+ derivatives market. Bitwise's play acknowledges what crypto natives knew years ago: the real value isn't in holding tokens—it's in capturing the infrastructure underpinning global liquidity.

Wall Street finally learns what 'alpha' means—five years after degens perfected it in their basements.

Bitwise HYPE ETF filed under the ‘33 Act

According to the prospectus, the proposed investment vehicle will issue shares on a continuous basis, with the number of shares left indeterminate under the registration. 

The asset manager has gone the commonly used Security Act of 1933 route for its HYPE ETF filing, which requires a review timeline and rule change from regulators before it is approved. 

The ‘33 Act is different from traditional funds regulated under the Investment Company Act of 1940, which classifies funds as investment companies or a commodity pool, like the Rex-Osprey XRP ETF. 

The SEC approved the Rex-Osprey XRP ETF filed in late June in just under 90 days, clearing the fund for launch on September 18, Cryptopolitan reported.

The filing also clarifies that Bitwise, as sponsor, will not fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

Bitwise is also planning to offer the proposed product with the use of in-kind creations and redemptions. This means investors could exchange shares of the ETF for actual HYPE tokens instead of cash, which would directly LINK the trust to the asset’s liquidity.

The S-1 does not yet specify the exchange where the product would be listed, the ticker symbol under which it would trade, or the fees charged to investors. Approval of the product will also require a FORM 19b-4 filing to formally kick off the SEC review that could take up to 240 days.

As reported by Cryptopolitan earlier this month, the SEC under chair Paul Atkins passed new generic listing standards for crypto ETFs that remove the need for the agency to scrutinize each product individually. If the underlying token has been traded for six months on a CFTC-regulated market, approval timelines may be shortened.

Bitwise ETF filings still pending approval

Bitwise has been expanding its roster of crypto-focused ETFs after its first proposal for a spot Bitcoin ETF BITB was approved by the SEC in January 2024, alongside 11 other investment vehicles from other issuers. 

According to the asset manager’s website, under custodian Bank of New York Mellon, BITB has 74,070,000 outstanding shares and about $4,417 billion assets under management. 

In July, Bitwise attempted to convert its flagship BITW crypto index fund into an ETF, which had initially received SEC approval, but was then placed on hold, delaying its launch.

The firm has also pursued single-asset funds for altcoins, filing for a spot XRP trust with the SEC in October last year, which was followed by filings from Aptos and NEAR products. Each of these proposals was submitted through the SEC’s EDGAR system, initiating lengthy review periods under which the agency has up to 240 days to issue a ruling.

So far, the Commission has exercised its authority to extend these reviews, with deadlines for Bitwise’s altcoin ETF proposals currently pushed to late 2025.

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