Asset manager 21Shares has filed with the US Securities and Exchange Commission (SEC) to launch a Hyperliquid (HYPE) Exchange-Traded Fund (ETF). This move highlights a rapidly growing trend of institutional investors seeking exposure to altcoins through regulated investment products.
The Race for HYPE and Altcoin Demand
- Growing Competition: 21Shares' filing follows a similar application by Bitwise just weeks earlier, indicating fierce competition among asset managers to capitalize on demand for the HYPE token.
- HYPE's Utility: The HYPE token powers the Hyperliquid perpetual futures protocol and blockchain, offering users fee discounts and acting as the gas token. Its price is surging alongside the protocol's rising trading volume.
- Custodians: The proposed 21Shares Hyperliquid ETF lists Coinbase Custody and BitGo Trust as custodians.
Wall Street's Altcoin Appetite
Recent launches of other altcoin-linked ETFs underscore the strong investor interest:
- Solana (BSOL) Success: Bitwise’s Solana Staking ETF (BSOL) had a massive debut, recording $72 million in trading volume on its second day, following a $55.4 million first-day volume—the largest crypto ETF debut of 2025.
- Other Launches: BSOL launched alongside Canary Capital’s Litecoin (LTC) and Hedera (HBAR) ETFs.
- Grayscale's Entry: Grayscale joined the market with the Grayscale Solana Trust ETF (GSOL), which traded $4 million on its first day.
Bitcoin ETF Outflows Despite Rate Cut
In contrast to the surging interest in altcoin ETFs, US-listed spot Bitcoin ETFs experienced their worst day of the week, recording $470 million in outflows on Wednesday.
- Leading Withdrawals: Fidelity’s FBTC saw $164 million in withdrawals, followed by ARK Invest’s ARKB ($143 million) and BlackRock’s IBIT ($88 million).
- Market Impact: The outflows occurred as Bitcoin's price briefly dipped to $108,000, despite a 25 basis-point rate cut by the US Federal Reserve.
- Current Metrics: Total cumulative net inflows for Bitcoin ETFs are now $61 billion, with assets under management at $149 billion.
The SEC's decision on the 21Shares Hyperliquid ETF will determine the next altcoin to join the rapidly expanding roster of US-listed crypto ETFs.
October 2025, Cryptoniteuae