21Shares Files for 2x Leveraged HYPE ETF That Could Become First U.S. Leveraged DeFi Fund

• 21Shares filed for a 2x leveraged Hyperliquid (HYPE) ETF to provide daily double exposure to the token.

• Structure uses swaps rather than direct custody, introducing counterparty and funding exposures.

• Initial capacity is estimated between $500 million and $1.5 billion depending on HYPE liquidity; HYPE ETP is already listed on the SIX Swiss Exchange.

Hyperliquid ETF filing: 21Shares seeks a 2x leveraged HYPE ETF in the U.S., offering high-beta DeFi exposure and new swap-based structure. Read COINOTAG analysis.

The proposed ETF offers high-beta exposure to Hyperliquid’s on-chain activity and could become the first U.S. leveraged DeFi ETF.

By COINOTAG — Published October 17, 2025. Updated October 17, 2025.

What is a Hyperliquid ETF?

Hyperliquid ETF refers to an exchange-traded fund designed to track the market performance of the Hyperliquid token (HYPE). The 21Shares filing proposes a 2x leveraged ETF that seeks to deliver twice the daily returns of HYPE via swap agreements rather than direct token custody, creating higher beta exposure for traders.

How would a 2x leveraged HYPE ETF work?

The proposed 2x leveraged HYPE ETF would use swap contracts to achieve daily amplified exposure to HYPE price movements. Swaps allow the fund to synthetically replicate the token’s returns while avoiding direct on-chain custody, but they also introduce counterparty risk, margining, and funding considerations that differ from spot-token holdings. The SEC filing estimates an initial capacity range of $500 million to $1.5 billion depending on market liquidity and counterparties’ willingness to provide leverage.

21Shares previously launched a HYPE product as an ETP on the SIX Swiss Exchange, which enabled institutional access without on-chain custody. In contrast, other applicants—such as Bitwise and VanEck—have proposed different approaches: Bitwise’s filing emphasizes direct token holdings, while VanEck’s draft contemplates integrating staking yields and potential buyback mechanisms tied to fund performance. The differences highlight varied risk, custody, and operational profiles among proposed HYPE products.

The recent HIP-3 upgrade on Hyperliquid expands permissionless creation of perpetual markets, which market participants say can increase liquidity and utility of HYPE. Official filings and exchange disclosures provide the basis for these details; source mentions include the U.S. SEC filing, SIX Swiss Exchange desk listings, and the Hyperliquid HIP-3 upgrade release (all referenced here as plain text sources).

Growing interest and market implications

Institutional interest in DeFi-linked products has risen this year, as seen in multiple ETF and ETP filings for HYPE. A leveraged HYPE ETF would offer traders a regulated, exchange-traded instrument for short-term directional exposure to on-chain trading activity. Market structure differences—swap-based replication versus direct custody or staking integration—will materially affect operational risk, tax treatment, and investor suitability.

Expert perspective: “A 2x leveraged HYPE ETF would be a novel bridge between DeFi on-chain dynamics and traditional markets,” says Maria Chen, Head of Digital Asset Research at COINOTAG. “Investors must weigh amplified returns against counterparty and funding risks inherent in swap-based structures.”

Regulatory review by the U.S. SEC will be central. The agency’s prior decisions on crypto ETFs, public comment periods, and precedent set by earlier approvals will shape the timeline and potential conditions for listing.

Frequently Asked Questions

Will the 21Shares 2x HYPE ETF hold Hyperliquid tokens directly?

No. According to the filing, the 21Shares 2x HYPE ETF proposes to achieve leverage through swap agreements rather than direct custody of HYPE tokens. This contrasts with other proposals (e.g., Bitwise) that plan direct token holdings, and it means investors would assume different operational and counterparty risks.

How soon could a Hyperliquid ETF appear on U.S. exchanges?

Approval timelines depend on the U.S. SEC’s review cycle, comment periods, and any required amendments to filings. Historically, crypto ETF reviews have taken months; stakeholders should monitor the official SEC filing docket and issuer statements for updates.

Key Takeaways

• Novel ETF structure: 21Shares proposes a 2x leveraged HYPE ETF using swaps, not direct custody, which changes the risk profile.
• Market capacity: The filing estimates initial fund capacity between $500M and $1.5B, contingent on liquidity and counterparties.
• Regulatory and product divergence: Other applicants (Bitwise, VanEck) have different custody and yield-integration approaches; SEC review will determine feasibility and timing.

Conclusion

The 21Shares filing for a 2x leveraged Hyperliquid (HYPE) ETF signals growing institutional interest in DeFi-linked exchange products. The proposal’s swap-based structure offers a high-beta instrument but introduces distinct counterparty and funding risks compared with direct-token ETFs. COINOTAG will continue to monitor SEC filings, exchange disclosures, and Hyperliquid protocol updates for developments; readers should review official filings and consult financial advisors before making investment decisions.

Also Read: Hyperliquid and Binance’s Clash Over Token Listings Criteria

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TAGGED: Crypto ETFs Hyperliquid (HYPE)