- Bitwise files ETF proposal tracking Hyperliquid’s HYPE token performance.
- HYPE token sees price dip as Bitwise launches ETF filing.
- SEC delays approval on several crypto-related ETF proposals.
Bitwise Investment Advisers has taken a significant step in the cryptocurrency market with the filing of a proposal for an exchange-traded fund (ETF) that would track the performance of Hyperliquid’s native token, HYPE.
The ETF is dubbed the Bitwise Hyperliquid ETF, and it was filed with the U.S. Securities and Exchange Commission (SEC) through an S-1 filing, the first-ever proposal of its kind to give exposure to HYPE, a token in the decentralized finance (DeFi) ecosystem.
Hyperliquid is a Layer 1 blockchain that was specially created to support decentralized finance applications. The blockchain is specifically interested in perpetual futures trading, which has become popular in the DeFi industry.
HYPE is the 21st-largest cryptocurrency by capitalization, and currently, its valuation is $11 billion, and its supply of tokens is 270.8 million. The last 24 hours have recorded a decrease in price of HYPE by 11%, the price is now at $40.51 as per CoinMarketCap.
The Industry Response and Broader Market Impact
The filing has garnered significant attention, especially from key figures within the investment community. Howard Lindzon, the co-founder of VC and StockTwits, expressed his thoughts on the matter through a post on X, remarking on the shift from the Web 2.0 era.
Lindzon highlighted the importance of this moment being created by investors who want to be early investors, often tying up capital at high prices when public markets provide a potentially better deal.
Also Read: Egrag Crypto: ‘XRP Will Shoot to $7.3 The Next Time This Happens’
Nevertheless, Bitwise’s proposal is now another addition to the list of cryptocurrency-related ETFs awaiting approval by the SEC. The agency has also taken a long time to approve several other altcoin ETFs, such as Canary spot SUI and PENGU funds, as well as proposals by companies such as Grayscale and VanEck.
This lag underscores the complicated regulatory environment that these products have to go through.
With the cryptocurrency industry still growing, new product launches such as the Bitwise Hyperliquid ETF can provide insight into the future of DeFi and how institutional investor instruments can be shaped to satisfy the increasing demand for digital assets.
While the filing is still under review by the SEC, it signals an ongoing trend where traditional finance increasingly intersects with the rapidly expanding world of decentralized finance.
Also Read: Pundit: ‘Ripple (XRP) CEO Warned Us About This Years Ago’ – Details
