- Bitwise filed an S-1 with the SEC for a spot HYPE ETF backed by Hyperliquid’s native token.
- The ETF will be physically backed, custodied by Coinbase, with no derivatives or leverage.
- HYPE jumped 4% to $42.50 on the announcement, signaling strong market interest.
Bitwise Asset Management has officially filed an S-1 with the U.S. Securities and Exchange Commission, seeking approval to launch a spot ETF for HYPE, the native token of decentralized exchange Hyperliquid. The proposed fund would allow traditional investors to gain exposure to HYPE without directly managing tokens, opening the door for institutional adoption through regulated brokerage accounts. Coinbase Custody is slated to handle safekeeping of the assets, while Bitwise Investment Advisers will sponsor the product.
Structure of the ETF
According to the filing, the trust will mirror the mechanics of existing spot Bitcoin ETFs. Shares will be created and redeemed in large blocks by authorized participants, with the value tied to HYPE’s daily net asset value (NAV). Unlike futures-based products, this ETF won’t involve derivatives or leverage—it will be physically backed by HYPE tokens. The design prioritizes transparency and regulatory compliance, appealing to investors seeking direct exposure without the complexities of self-custody or DeFi trading platforms.
Market Impact
The news immediately moved markets, with HYPE rising 4% to $42.50 at the time of press. Analysts view the filing as a milestone for decentralized perpetuals platforms, signaling growing institutional recognition of Hyperliquid’s role in DeFi. If approved, the fund would not only expand HYPE’s liquidity pool but also legitimize it as one of the few non-Bitcoin, non-Ethereum assets to break into the ETF conversation.
Why It Matters
For Bitwise, the move underscores its reputation as an innovator in crypto asset management, consistently pushing to bring emerging tokens into mainstream finance. For Hyperliquid, an ETF could accelerate adoption by bridging DeFi-native assets with Wall Street infrastructure. While SEC approval is never guaranteed, the filing itself highlights a shift in how regulators and institutions are beginning to treat next-generation crypto assets.
