21Shares Files for 2x Leveraged HYPE ETF in U.S., Targeting Hyperliquid Token Exposure

Swiss asset manager 21Shares has submitted a proposal to the U.S. Securities and Exchange Commission for a 2x Leveraged exchange-traded fund tied to Hyperliquid's HYPE token. The product aims to double daily returns for investors capitalizing on the protocol's growing dominance in on-chain crypto trading. Approval would mark the first U.S.-listed leveraged ETF tracking a decentralized finance token's performance.

The filing extends 21Shares' crypto ETF suite, which includes a Dogecoin product, and follows the HYPE ETP's earlier listing on Switzerland's SIX Exchange. Unlike traditional structures, the proposed ETF employs swaps rather than direct custody—introducing novel funding mechanisms and counterparty risk profiles. Initial capacity projections range between $500 million and $1.5 billion, contingent on HYPE's market liquidity depth.

Competitors Bitwise and VanEck are pursuing similar strategies with distinct approaches. Bitwise's filing indicates direct HYPE token custody, while VanEck's model incorporates staking yields and performance-linked buybacks. These developments coincide with Hyperliquid's HIP-3 upgrade, which enables permissionless perpetual market creation—further expanding the protocol's decentralized trading capabilities.