The post 21Shares Files S-1 for First Leveraged Hyperliquid (HYPE) ETF appeared on BitcoinEthereumNews.com. 21Shares filed an S-1 with the SEC for a 2x leveraged ETF tied to Hyperliquid’s HYPE token The fund uses derivatives, not direct token holdings, to achieve 2x daily market exposure The ETF operates under the Securities Act of 1933 but outside CFTC and Investment Company Act oversight Crypto asset manager 21Shares has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC). The filing seeks approval to launch the 21Shares 2x Long HYPE ETF. This leveraged fund is designed to deliver twice the daily returns of Hyperliquid (HYPE) before fees and expenses. Related: 21Shares Files INJ ETF as Injective Joins Elite Group With Multiple ETF Bids How the 2x HYPE ETF Works According to the filing, the proposed fund will use swap agreements, options, and other derivatives to mirror HYPE’s market performance. The ETF will not hold the token directly. It instead mirrors on-chain dynamics native to the Hyperliquid network, such as perpetual futures trading and fee structures. 21Shares noted that the fund will use a daily reset mechanism, similar to conventional leveraged ETFs, to maintain its 2x exposure target. This derivative-based structure aims to reduce custody risk, as it avoids direct token ownership. Authorized Participants (APs) may create or redeem shares either in cash or in-kind. Cash transactions are handled through designated HYPE Counterparties. These are independent third parties that acquire or sell HYPE on behalf of the Trust. The filing states that 21Shares will conduct due diligence on these counterparties, reviewing their financial standing and regulatory oversight. Creation, Redemption, and Oversight When APs create shares in cash, the HYPE Counterparty purchases equivalent HYPE and deposits it with approved custodians. For redemptions, the process is reversed. HYPE is sold at the Pricing Benchmark rate, and cash proceeds are deposited for settlement. APs are responsible for… The post 21Shares Files S-1 for First Leveraged Hyperliquid (HYPE) ETF appeared on BitcoinEthereumNews.com. 21Shares filed an S-1 with the SEC for a 2x leveraged ETF tied to Hyperliquid’s HYPE token The fund uses derivatives, not direct token holdings, to achieve 2x daily market exposure The ETF operates under the Securities Act of 1933 but outside CFTC and Investment Company Act oversight Crypto asset manager 21Shares has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC). The filing seeks approval to launch the 21Shares 2x Long HYPE ETF. This leveraged fund is designed to deliver twice the daily returns of Hyperliquid (HYPE) before fees and expenses. Related: 21Shares Files INJ ETF as Injective Joins Elite Group With Multiple ETF Bids How the 2x HYPE ETF Works According to the filing, the proposed fund will use swap agreements, options, and other derivatives to mirror HYPE’s market performance. The ETF will not hold the token directly. It instead mirrors on-chain dynamics native to the Hyperliquid network, such as perpetual futures trading and fee structures. 21Shares noted that the fund will use a daily reset mechanism, similar to conventional leveraged ETFs, to maintain its 2x exposure target. This derivative-based structure aims to reduce custody risk, as it avoids direct token ownership. Authorized Participants (APs) may create or redeem shares either in cash or in-kind. Cash transactions are handled through designated HYPE Counterparties. These are independent third parties that acquire or sell HYPE on behalf of the Trust. The filing states that 21Shares will conduct due diligence on these counterparties, reviewing their financial standing and regulatory oversight. Creation, Redemption, and Oversight When APs create shares in cash, the HYPE Counterparty purchases equivalent HYPE and deposits it with approved custodians. For redemptions, the process is reversed. HYPE is sold at the Pricing Benchmark rate, and cash proceeds are deposited for settlement. APs are responsible for…