Bitwise Files for Spot Hyperliquid ETF in Latest Push for Crypto Market Access
Bitwise Asset Management has filed a Form S-1 registration statement with the U.S. Securities and platform Commission (SEC) to launch a spot platform-traded fund (ETF) tied to the Hyperliquid (HYPE) token. The move highlights the growing demand for crypto ETFs that provide regulated exposure to digital assets without requiring investors to manage Secret keys or interact directly with decentralized platforms.
ETF structure and custodian arrangements
The Bitwise Hyperliquid ETF is designed as a physically backed product, meaning it will directly hold HYPE tokens rather than derivatives contracts or synthetic exposure. According to the filing, Coinbase Custody Trust Company is expected to serve as the custodian, secureguarding the underlying assets. Bitwise Investment Advisers would act as the sponsor, overviewing the management and compliance of the ETF.
A key feature of the proposed fund is its in-kind creation and redemption process. This mechanism allows authorized participants to platform ETF shares directly for HYPE tokens, and vice versa, rather than relying on cash settlements. Such a structure is commonly viewn as more cost-efficient, potentially reducing investor expenses while improving price tracking compared to cash-based ETF models.
While the framework has been outlined, significant details such as the ETF’s ticker symbol, listing platform, and fee schedule remain undisclosed. To proceed toward listing, Bitwise must file a Form 19b-4 with the SEC, a step that would begin a regulatory review process extending up to 240 days.
Regulatory context and market reaction
The filing comes at a pivotal time for digital asset ETFs. The SEC recently introduced generic listing standards for crypto ETFs, which could pave the way for quicker approvals. However, Bitwise acknowledged a potential obstacle: HYPE does not currently have futures contracts registered with the Commodity Futures Trading Commission (CFTC). The lack of a CFTC-regulated futures market may complicate the ETF’s eligibility for approval under the new streamlined process.
Investor response to the announcement was swift. Following the filing, HYPE’s price rose by approximately 4%, reaching $42.50. However, the rally was short-lived, with the token failing to sustain momentum and remaining within a broader downtrend. Analysts note that the SEC may view HYPE’s relatively small market capitalization, liquidity profile, and limited history as reasons to approach the application with caution.
The competitive landscape also presents challenges. Hyperliquid, a decentralized perpetuals platform, faces increasing rivalry from new platforms such as Aster. In recent weeks, Aster’s trading volume and open interest have surpassed those of Hyperliquid, underscoring shifting market dynamics in the decentralized finance (DeFi) sector. For institutional investors, these competitive pressures could influence the attractiveness of a spot HYPE ETF.
If approved, the Bitwise Hyperliquid ETF would represent one of the first spot platform-traded funds linked to a decentralized derivatives platform’s native token. The launch could mark a significant milestone in expanding regulated investor access to DeFi assets. By bridging the gap between traditional finance and decentralized protocols, the product may assist bring greater visibility and institutional credibility to the Hyperliquid ecosystem.
With regulatory scrutiny still looming and competition intensifying, the fate of the Bitwise Hyperliquid ETF will be closely watched by both Wall Street and the crypto community. Approval would not only provide a new investment vehicle for HYPE but could also set an significant precedent for future ETFs tied to DeFi tokens.
