21Shares Files HYPE with the US SEC, Hinting at an Upcoming Hyperliquid ETF

crypthub

about 14 hours ago

21Shares Files for Hyperliquid ETF

21Shares, the world’s largest crypto ETP issuer, filed with the SEC to launch a passive ETF tracking the HYPE token. The fund will hold HYPE and price it daily using a specified benchmark. Coinbase and BitGo are named as custodians for the trust. The filing also notes a possible use of liquid staking protocols to issue a tradable staking token.

Passive ETF Structure

Passive ETFs track an asset by holding it in fixed proportions, avoiding active management. This approach lowers expense ratios and management fees. Daily disclosure of holdings provides investors clear transparency. Lower turnover improves tax efficiency for shareholders.

Significance of the HYPE Token

HYPE is the youngest cryptocurrency to receive an ETF application, underscoring rising institutional interest. Since its November 2024 launch, it has surged over 1,100% and reached a market cap near $13 billion. Despite the filing, the token fell 2% to about $46, roughly 20% below its yearly peak of $59.

SEC Review Landscape

The SEC has received numerous crypto ETF requests, including for SOL, XRP, and DOGE, but staff shortages from a government shutdown have slowed decisions. In September the agency removed major barriers for spot crypto ETFs, opening potential approval paths. The outcome for the Hyperliquid ETF remains pending.