JUST IN: Bitwise Files S-1 for First Spot ETF Tracking Hyperliquid’s HYPE

The post JUST IN: Bitwise Files S-1 for First Spot ETF Tracking Hyperliquid’s HYPE appeared first on Coinpedia Fintech News

HYPE, the native token of Hyperliquid, has been gaining momentum across the DeFi ecosystem.

With the rising support from institutions and the growing strength of its ecosystem, HYPE is opening up new opportunities for investors and could see wider use and trading in the market, especially through new regulated channels.

Here’s the latest update. 

Bitwise Files For First HYPE ETF

In a recent update, Bitwise Investment Advisers has filed with the SEC to launch the first exchange-traded fund (ETF) linked to Hyperliquid’s native token, HYPE. 

The proposed ETF will directly hold the token, giving investors exposure to Hyperliquid’s value. The fund also supports in-kind creations and redemptions, letting shares be swapped for HYPE tokens instead of cash, a move designed to cut costs and simplify operations.  

The next step is submitting Form 19b-4 to start the approval process, which could take up to 240 days. SEC recently introduced generic listing standards to speed up crypto ETF approvals. But Bitiwise notes that there are no Hyperliquid futures registered with the CFTC, so the faster process may not be possible.

Details on the ETF’s exchange, ticker symbol, and management fees have not yet been disclosed.

Hyperliquid, The Standout in Crypto

Bitwise analyst praised Hyperliquid, calling it a standout protocol in the crypto space. He noted that it combines the best features of Bitcoin, Ethereum, and Solana, and added that anyone familiar with crypto who isn’t impressed likely hasn’t fully explored it yet.

If approved, the Hyperliquid ETF would be a first of its kind and would mark a major milestone by giving institutions regulated access while also adding more liquidity to the market.

HYPE Price Stays Flat

Despite the exciting announcement, HYPE remained mostly flat, currently trading at $42.32. The token has been in a downtrend since hitting an all-time high of $59.30, and has dropped roughly 25% over the past week.

Howard Lindzon, CEO of Stocktwits reacted to the filing saying “Degeneracy for all as it should be..priced in real time.” 

He compared today’s investment climate to the Web2 era, which he described as a golden period for early-stage investors. According to him, while capital often gets locked up in high-priced private deals today, public markets may sometimes offer better opportunities.

Hyperliquid Strengthens Its Ecosystem 

Hyperliquid is a Layer 1 blockchain built for decentralized finance, with a strong focus on perpetual futures trading via its decentralized exchange.

It recently launched its native stablecoin, USDH, paired with USDC, with nearly $2 million in early trading. This gives the network its first dollar-backed asset, providing traders with a stable option for trading and collateral. The stablecoin will be managed by Native Markets.

At the same time, the HYPE treasury is also growing. Recently, Hyperion DeFi added $10 million in HYPE, bringing its total allocation to over 1.7 million tokens. This shows strong confidence in HYPE’s long-term potential.

What an ETF Could Mean for HYPE 

The recent developments around HYPE highlight the increasing institutional interest and stronger ecosystem support. The proposed ETF would further make it easier for traditional investors to access HYPE, boosting its market visibility. 

Investors could benefit from higher liquidity, regulated exposure, and a more resilient ecosystem backing the token.

This is a crucial step for HYPE toward wider adoption. But will the SEC green-light the move? Time will tell…