Quick Breakdown
- Bitwise has filed to launch the first Hyperliquid (HYPE) ETF, directly holding the token.
- The ETF offers in-kind redemptions, similar to Bitcoin and Ether ETFs.
- Rival DEX Aster is surging, with trading volume more than tripling Hyperliquid’s.
Asset manager Bitwise has moved to launch the industry’s first exchange-traded fund (ETF) tied to the Hyperliquid token (HYPE), as perpetual futures DEX rivalry intensifies.
Bitwise seeks approval for Hyperliquid ETF
Bitwise submitted a Form S-1 filing to the SEC on Thursday for the proposed Bitwise Hyperliquid ETF, which would directly hold HYPE tokens. The token is used on the Hyperliquid decentralized exchange (DEX) for fee payments and trading discounts.
The filing does not yet disclose the ETF’s exchange listing, ticker symbol, or management fees. However, it specifies that the fund will operate with in-kind creations and redemptions, meaning investors can swap ETF shares for HYPE tokens instead of cash. This feature mirrors recent SEC-approved structures for Bitcoin and Ether ETFs, which regulators said make crypto funds “less costly and more efficient.”
SEC hurdles ahead
While the S-1 filing represents an early step, the ETF will also require a Form 19b-4 submission to begin the formal approval process. Under SEC rules, this process could take up to 240 days.
The SEC recently introduced generic listing standards for crypto ETFs, designed to streamline approvals if the underlying asset has traded on a Commodity Futures Trading Commission (CFTC)-regulated exchange for at least six months. Bitwise acknowledged in its filing, however, that Hyperliquid futures are not currently registered with the CFTC, which may complicate its path to approval.
Aster surges as Hyperliquid slips
Bitwise’s filing arrives at a time when Aster, a perpetual futures DEX on BNB Chain, is rapidly overtaking Hyperliquid in market share.
On Thursday, Aster’s trading volume reached an all-time high of $70 billion, with $35.8 billion traded in the past 24 hours—more than triple Hyperliquid’s $10 billion during the same period, according to DeFiLlama.
CoinGlass data shows Aster’s open interest has soared to $1.15 billion, a dramatic jump from just $143 million on September 20. Meanwhile, Hyperliquid’s open interest fell 1.85% to $2.2 billion, as its token price dropped 3.5% to $42.5.
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