Bitwise Files First Hyperliquid ETF Proposal as Crypto Futures Market Heats Up

Wall Street meets DeFi as Bitwise drops regulatory bombshell

The crypto asset manager just filed the first-ever Hyperliquid ETF proposal—right as futures trading volumes explode across digital asset markets.

Why This Matters Now

Traditional finance giants are finally waking up to hyper-efficient decentralized infrastructure. Bitwise's move signals institutional recognition that legacy systems can't compete with blockchain-native execution speeds.

Futures markets hit record volumes last quarter while traditional equity products stagnated. The timing isn't accidental—smart money's pivoting to where the actual liquidity lives.

The Regulatory Chess Match

This filing represents a calculated end-run around archaic settlement systems. Hyperliquid's infrastructure processes transactions in seconds while Wall Street's tape still moves at dial-up speeds.

Watch for legacy finance lobbyists to suddenly discover 'concerns' about investor protection—right as their commission streams face existential threats.

Bottom Line: The institutions aren't coming—they're already here, and they're bypassing the middlemen. Sometimes innovation means building new tables rather than waiting for seats at the old ones.

TLDR

• Bitwise filed the first ETF proposal to track Hyperliquid’s HYPE token with the SEC
• HYPE token fell 11% to $40.51 with an $11 billion market cap, ranking as 21st-largest cryptocurrency
• SEC delayed action on several altcoin ETF proposals including SUI, PENGU, INJ, SEI, and Avalanche funds
• Competition heats up as Aster DEX surpassed Hyperliquid in trading volume, reaching $35.8 billion vs $10 billion
• The ETF would offer in-kind redemptions and directly hold HYPE tokens, requiring both S-1 and 19b-4 filings for approval

Crypto asset manager Bitwise Investment Advisers has submitted the first exchange-traded fund proposal to track Hyperliquid’s native HYPE token. The S-1 filing with the Securities and Exchange Commission represents a new step in expanding crypto ETF offerings beyond Bitcoin and Ethereum.

NEW: @BitwiseInvest files for Hyperliquid ETF. HYPE pic.twitter.com/l3WaXRmo8Z

— James Seyffart (@JSeyff) September 25, 2025

Hyperliquid operates as a LAYER 1 blockchain designed for decentralized finance applications. The platform focuses primarily on perpetual futures trading through its decentralized exchange.

The HYPE token serves multiple functions within the ecosystem. It provides trading fee discounts on the decentralized exchange and pays transaction fees on the blockchain network.

HYPE experienced price pressure during the filing period. The token dropped 11% to $40.51 over 24 hours according to market data.

The cryptocurrency maintains a circulating supply of 270.8 million tokens. With its current price, HYPE holds an $11 billion market capitalization, making it the 21st-largest cryptocurrency by market value.

Regulatory Landscape Remains Complex

The SEC delayed action on multiple altcoin ETF proposals during the same period. Canary’s spot sui and PENGU fund applications face extended review timelines.

The regulator also postponed decisions on Canary’s staked INJ and SEI fund proposals. Spot Avalanche ETF applications from Grayscale and VanEck received similar treatment.

Dozens of crypto-related ETF filings currently await regulatory approval. The backlog reflects ongoing regulatory uncertainty in the digital asset space.

Hashdex expanded its existing crypto ETF to include XRP and Solana. This move followed the SEC’s recent approval of broader listing standards for cryptocurrency products.

Competition Intensifies Among DEX Platforms

Trading competition among perpetual futures platforms has increased substantially. Aster launched its token earlier this month and quickly gained market share from established players.

Aster’s trading volume surged past Hyperliquid’s performance metrics. The BNB Chain-native platform processed $35.8 billion in 24-hour volume compared to Hyperliquid’s $10 billion.

Open interest data shows Aster’s rapid growth trajectory. The platform’s open interest reached $1.15 billion on Thursday, up from under $143 million on September 20.

Hyperliquid’s open interest declined 1.85% to $2.2 billion over the same period. The established platform has long held the leading position in onchain futures trading.

Total perpetual trading volumes across decentralized exchanges hit $70 billion on Thursday. This represents an all-time high for the DEX futures market.

The Bitwise filing includes standard ETF features for institutional investors. The fund WOULD offer in-kind creation and redemption mechanisms, allowing shares to be exchanged for actual HYPE tokens rather than cash.

The SEC approved in-kind creation and redemption for crypto products in July. Regulators described this structure as more cost-effective and efficient for market participants.

Bitwise must file additional paperwork before launch can proceed. The company needs FORM 19b-4 approval to begin the formal SEC review process, which can take up to 240 days.

The filing notes that no Hyperliquid futures contracts currently exist on CFTC-regulated exchanges. This may complicate the approval timeline under recent SEC guidance for crypto ETFs.