Hyperliquid ETF Nears Launch as HYPE Price Surges

Key Insights

• HYPE price has jumped by over 100% from its lowest point this year.
• Bitwise is expected to launch the first HYPE ETF this month.
• The token has solid fundamentals that may push it higher in the near term.

HYPE price, volume, and futures open interest continued rising on Saturday. Market participants were waiting for the upcoming launch of the first spot Hyperliquid ETF in the United States. Hyperliquid token continued the uptrend, reaching a high of $42, its highest point since March 19.

Bitwise to Launch an Expensive Spot HYPE ETF Soon

American investors will soon have access to an ETD tracking one of the biggest disruptors in the crypto industry. This access, however, will come at a high cost.

In a filing to the SEC, Bitwise said that the ticker for its spot HYPE ETF will be BHYP. At the same time, the expense ratio will be 0.67%. In contrast, the recently launched Morgan Stanley Bitcoin ETF (MSBT) has an expense ratio of 0.14%. However, the iShares Bitcoin ETF (IBIT) has a ratio of 0.25%.

A 0.67% expense ratio means investors pay $670 annually on a $100,000 BHYP ETF position. That fee is considered quite high. A similar investor in the Vanguard S&P 500 Index (VOO) would pay just $30 because of its 0.03% expense ratio.

Most importantly, the investor can buy the HYPE token directly on most exchanges and pay only the original transaction cost.

The high fees for the BHYP opens the opportunity for Grayscale to undercut it when it is approved by the SEC later this year.

Hyperliquid Growth is Accelerating

Fundamentally, there is a strong case for the HYPE token. HYPE price benefits as Hyperliquid has become the fastest player in the crypto industry with its presence across various sectors. It has its layer-2 network that has over $1.6 billion in TVL and $5.8 billion in stablecoin supply.

Its perpetual futures DEX network is thriving as more traders use it to trade popular assets like cryptocurrencies, stocks, and commodities. Oil futures have become highly popular during the ongoing Iran war.

Hyperliquid network handled over $200 billion in volume in March this year, much higher than its closest competitors, combined. Its volume was much higher than that of all DEX platforms combined. This includes popular chains like Ethereum, Solana, BSC, Base, and Arbitrum.

Solana DEX networks like Pump and Raydiun had over $50 billion in volume. On the other hand, Ethereum and Base had $38 billion and $22 billion, combined. These numbers mean that Hyperliquid is becoming a more mainstream platform among investors.

Most importantly, Hyperliquid has more room to grow as the developers are about to integrate HIP-4 as soon as next week. This new upgrade will bring prediction features to the network. That would allow users to place trades on areas like politics, sports, the financial market, and culture.

The HIP-4 upgrade comes after developers launched HIP-3. HIP-3 became popular among traders because it introduced the concept of an exchange-of-exchanges. It made it easier for people to launch their markets in the network.

These fundamentals have boosted demand for the HYPE token. It has jumped over 200% in the last 12 months and 103% from the year-to-date low.

In contrast, Bitcoin and Ethereum prices remain in the red this year. HYPE’s futures open interest has soared to $1.76 billion, its highest level since March 19.

HYPE Price Technical Analysis

The daily chart shows the HYPE price started rebounding earlier this year. It formed a double-bottom pattern at $20 with a neckline at $28.24. It then conducted a break-and-retest pattern by moving back to the neckline in February.

The token continues its rebound and has remained above the 50-day Exponential Moving Average. This has provided it with substantial support in the past few months. It is also above the ascending trendline that links its lowest swings since January.

The path of least resistance for the HYPE price is bullish. Its initial target is the year-to-date high of $43. A move above that price signals more gains. The Murray Math Lines tool points to an extreme overshoot level at $56.

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