Crypto ETF Race Heats Up with 21Shares Hype Filing

TLDR

• 21Shares files for Hype ETF, pushing blockchain into mainstream finance.
• Hype ETF filing signals growing institutional interest in DeFi tokens.
• Hyperliquid’s Hype token gains momentum with ETF and retail listings.
• Coinbase, BitGo named custodians for the new Hype ETF by 21Shares.
• ETF race heats up as VanEck and Bitwise eye similar Hype token funds.

21Shares has formally submitted a filing for a Hype ETF, signaling fresh competition in the crypto ETF landscape. The firm seeks to track the price of Hype token, the native asset of the Hyperliquid platform. This move highlights growing momentum toward integrating blockchain assets into traditional financial products.

Hype ETF Filing Marks New Push Toward Institutional Entry

21Shares filed an S-1 registration form with the U.S. SEC to launch a Hype ETF tied to the Hyperliquid token. The ETF will passively follow the price of Hype, reflecting broader market demand for regulated crypto exposure. 21Shares selected Coinbase and BitGo as custodians, enhancing operational trust and infrastructure.

Hyperliquid enables on-chain trading of crypto derivatives, and Hype powers its decentralized exchange operations. The token currently ranks as the eleventh-largest by market cap, underscoring its market relevance. The proposed Hype ETF aims to channel traditional capital toward this fast-growing decentralized platform.

The filing arrives a week after 21Shares announced its pending acquisition by FalconX, a digital asset trading firm. This development suggests a strategic shift to scale institutional offerings while expanding ETF coverage. FalconX expects to leverage 21Shares’ expertise in ETFs to reach a broader client base.

Regulatory Activity and Hype ETF Momentum Build

The SEC remains under pressure from a surge in crypto ETF applications across various tokens, including Solana and Dogecoin. In September, the agency removed key roadblocks, but final approvals are delayed due to ongoing government staffing shortages. Despite this, market participants continue to file and prepare for approval.

Hype ETF interest reflects a larger trend among asset managers pursuing exposure to emerging digital assets. Companies like VanEck and Bitwise are also preparing similar offerings involving Hype. This unified interest strengthens the token’s standing in both retail and institutional channels.

The Hype ETF filing reinforces the rising prominence of Hyperliquid’s trading ecosystem. Spot trading for the Hype token recently launched on Robinhood, expanding reach to U.S. retail users. Broader access and exchange support may boost liquidity and prepare the market for future ETF-driven flows.

Product Expansion and Market Impact

21Shares has steadily expanded its lineup of crypto investment products, now managing over $11 billion across multiple funds. Recent moves into leveraged and thematic ETFs highlight the firm’s intent to diversify risk exposure within the blockchain asset class. The Hype ETF adds another dimension to its growing offerings.

Market analysts note that such filings often coincide with increased token activity as participants anticipate broader accessibility and trading avenues. The Hype ETF could drive more inflows, tighten spreads, and attract regulated capital to decentralized finance platforms. These impacts collectively support greater price stability and long-term network growth.

The Hype ETF, once approved, could anchor further integrations between traditional investment tools and on-chain trading environments. As more platforms list Hype and asset managers adopt related products, the token’s influence may expand. With institutional and retail channels aligning, Hype stands poised for deeper market integration.

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