Bitwise Files to Launch Hyperliquid ETF with HYPE Token - A New Era for Crypto Investing

Bitwise just dropped the regulatory equivalent of a mic drop—filing paperwork for a Hyperliquid ETF backed by the HYPE token.

The Institutional On-Ramp

This isn't just another crypto fund. Bitwise's move signals a direct bridge between traditional finance and decentralized perpetual exchanges. They're cutting through the usual Wall Street red tape to give accredited investors exposure to Hyperliquid's ecosystem.

Why HYPE Changes the Game

The HYPE token ETF structure bypasses traditional custody hurdles by tracking the performance of a decentralized protocol. No more complex wallet management or security concerns that typically scare off institutional money. It's passive exposure to DeFi's growth engine.

The Regulatory Tightrope

Filing this ETF shows Bitwise believes the SEC's stance is softening—or that they've found a regulatory loophole big enough to drive a blockchain through. Either way, it's a bold bet on crypto's institutional future while traditional finance still struggles with basic blockchain comprehension.

This could finally be the product that makes your financial advisor stop sweating when you mention 'perpetual swaps'—though they'll probably still recommend bonds instead.

Growing competition in perpetual futures

Bitwise’s filing comes as competition in the perpetual futures DEX space heats up. Aster, a BNB Chain-based DEX, recently launched its token, which saw a major surge in both trading volume and open interest. 

According to DefiLlama, Aster’s 24-hour trading volume hit $35.8 billion, more than two times Hyperliquid’s $17 billion during the same period. Further, CoinGlass data shows open interest on Aster’s token jumped to $1.16 billion, up from $143 million earlier in the week, while HYPE’s open interest fell slightly to $2.2 billion.

SEC approval process ahead

Bitwise submitted a FORM S-1 under the Securities Act of 1933 to register the ETF, which is the first step in the approval process. A Form 19b-4 will follow to start SEC review, which could take up to 240 days.

While the SEC has approved generic listing standards for crypto ETFs, Bitwise noted that no Hyperliquid futures contracts are currently registered with the Commodity Futures Trading Commission (CFTC), which could influence timelines.

The Bitwise Hyperliquid ETF aims to bring direct crypto exposure to investors while the DEX market sees rapid shifts. As Aster performs better in terms of volume and open interest compared to Hyperliquid, the ETF may find a following, yet the timelines of approval and the competition in the market are the main factors to its success.

Also Read: James Wynn: Hyperliquid Will Die ‘Slow & Painful Death’ As ASTER Soars