21Shares Files for HYPE Spot ETF Amid Expanding Crypto Fund Landscape
Swiss-based crypto asset manager 21Shares has filed with the U.S. Securities and platform Commission (SEC) to launch a new platform-traded fund (ETF) offering direct exposure to the HYPE token, native to the Hyperliquid network. The filing, submitted on October 29, 2025, positions 21Shares as one of the first firms to pursue a spot ETF tied to an altcoin beyond BTC and ETH, following the SEC’s landmark approvals of spot BTC ETFs earlier this year.
According to the S-1 registration statement published on the SEC’s website, the proposed 21Shares HYPE ETF would operate as a passively managed fund designed to track the price of the HYPE token. Coinbase and BitGo are listed as custodians responsible for secure digital asset storage, while the listing platform remains unspecified in the initial draft filing. The ETF aims to provide regulated exposure to Hyperliquid’s ecosystem, known for its decentralized trading infrastructure and growing market activity.
Industry observers say the move signals an expansion of the crypto ETF landscape, reflecting growing investor demand for diversified digital asset exposure under regulatory oversight. 21Shares, already known for its suite of crypto-linked ETFs in European markets, is extending its footprint into the U.S. by introducing a product that aligns institutional compliance with decentralized finance innovation.
Regulatory review process ahead
The SEC will now review the S-1 filing, a process that involves detailed evaluation and potential revisions before any decision on approval. In addition to the S-1, the ETF may require a corresponding 19b-4 rule change filing from the platform where it plans to list. Approval timelines remain uncertain, as the SEC continues to assess surveillance-sharing agreements, liquidity standards, and custodial secureguards for tokens other than BTC or ETH.
If approved, the 21Shares HYPE ETF would mark a significant milestone as one of the first regulated financial instruments in the U.S. tied to an altcoin. Analysts suggest such approval could set a precedent for future ETFs tracking other blockchain projects, potentially broadening investor access to emerging digital asset classes. However, the outcome will depend on the SEC’s evolving stance toward non-BTC crypto markets and the agency’s comfort with underlying asset market integrity.
Growing competition among crypto ETF issuers
The 21Shares filing arrives amid intensifying competition among global asset managers viewking to capitalize on renewed institutional interest in digital assets. Firms such as Grayscale, VanEck, and Hashdex are also exploring ETF products centered around diverse crypto assets and ecosystems. This trend underscores a broader shift toward the institutionalization of crypto markets and the formal integration of decentralized finance into traditional investment frameworks.
For 21Shares, the HYPE ETF represents both a strategic and symbolic step in bridging regulated capital markets with decentralized networks. As the regulatory environment develops, token-specific ETFs like this could become a gateway for investors viewking compliant exposure to on-chain innovation.
