Asset manager Bitwise has filed to launch an exchange-traded fund (ETF) tracking Hyperliquid (HYPE), the token linked to the crypto perpetual futures protocol Hyperliquid.
According to a regulatory filing with the SEC on Thursday, the proposed Bitwise Hyperliquid ETF will directly hold HYPE tokens, which provide discounts on Hyperliquid’s decentralized exchange (DEX) and are used to pay blockchain fees.
The filing does not yet reveal the ETF’s trading exchange, ticker symbol, or management fees. If approved, the fund will allow in-kind creations and redemptions, meaning investors can swap ETF shares for HYPE tokens rather than cash. This approach, approved by the SEC in July for crypto products, aims to reduce costs and improve efficiency.
Growing competition in perpetual futures
Bitwise’s filing comes as competition in the perpetual futures DEX space heats up. Aster, a BNB Chain-based DEX, recently launched its token, which saw a major surge in both trading volume and open interest.
According to DefiLlama, Aster’s 24-hour trading volume hit $35.8 billion, more than two times Hyperliquid’s $17 billion during the same period. Further, CoinGlass data shows open interest on Aster’s token jumped to $1.16 billion, up from $143 million earlier in the week, while HYPE’s open interest fell slightly to $2.2 billion.
SEC approval process ahead
Bitwise submitted a Form S-1 under the Securities Act of 1933 to register the ETF, which is the first step in the approval process. A Form 19b-4 will follow to start SEC review, which could take up to 240 days.
While the SEC has approved generic listing standards for crypto ETFs, Bitwise noted that no Hyperliquid futures contracts are currently registered with the Commodity Futures Trading Commission (CFTC), which could influence timelines.
The Bitwise Hyperliquid ETF aims to bring direct crypto exposure to investors while the DEX market sees rapid shifts. As Aster performs better in terms of volume and open interest compared to Hyperliquid, the ETF may find a following, yet the timelines of approval and the competition in the market are the main factors to its success.
Also Read: James Wynn: Hyperliquid Will Die ‘Slow & Painful Death’ As ASTER Soars
