- Bitwise filed Form S-1 for a Hyperliquid ETF directly holding HYPE tokens with in-kind redemptions.
- SEC review for the proposed Hyperliquid ETF could take up to 240 days before a decision.
- Aster’s daily trading volume hit $35.8B, over triple Hyperliquid’s $10B, signaling rising competition.
Bitwise Asset Management has moved to launch a Hyperliquid ETF, filing with the U.S. Securities and Exchange Commission on Thursday. The fund would directly hold HYPE, the native token of the Hyperliquid blockchain, offering investors exposure to its value while also allowing in-kind share creation and redemptions using tokens.
ETF Structure and SEC Approval Process
The company’s registration was submitted under the Securities Act of 1933 through a Form S-1. This structure enables the product to hold tokens directly, unlike futures-based funds. The ETF would track HYPE, which provides trading discounts on Hyperliquid’s decentralized exchange and serves as the blockchain’s fee payment token.
A notable feature of the ETF is its in-kind creation and redemption system. Investors could exchange shares for HYPE tokens instead of cash, a process the SEC approved for crypto products earlier this year. Regulators described it as a method that reduces costs and increases efficiency compared with cash settlements.
Before any launch, Bitwise must submit a Form 19b-4 to formally begin the SEC review process. This review can extend up to 240 days. The company noted that no Hyperliquid futures contracts are registered with the Commodity Futures Trading Commission, which could influence how long the review takes.
Perpetual Futures DEX Market Competition
The ETF proposal arrives amid strong competition in decentralized perpetual futures trading. Hyperliquid has been a leading player, yet rival Aster has rapidly gained momentum since introducing its token in September.
Per DefiLlama, decentralized perpetual trading volumes reached a record $70 billion on Thursday. Aster accounted for $35.8 billion in daily trading volume, surpassing Hyperliquid’s $10 billion by more than three times during the same period.
CoinGlass data shows Aster’s open interest surged to $1.15 billion, up from just $143 million days earlier. Hyperliquid’s HYPE open interest dipped 1.85% to $2.2 billion, while the token’s price fell to $40 with a circulating supply of 270.8 million and a market capitalization near $11 billion.
