Bitwise has filed to launch the Bitwise Hyperliquid ETF (HYPE ETF), a fund that would directly hold the Hyperliquid (HYPE) token and offer in‑kind creations and redemptions to provide direct exposure to HYPE and its protocol utility.
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Bitwise filed an S‑1 to register a trust that holds HYPE tokens, aiming to list an ETF that provides direct token exposure.
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The ETF would allow in‑kind creation/redemption, potentially reducing costs and tracking error versus cash‑settled products.
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Market data shows Aster’s 24h volume recently tripled Hyperliquid’s; open interest and trading flows will shape regulatory timing.
Bitwise Hyperliquid ETF seeks direct HYPE exposure with in‑kind redemptions; read filing details, timeline, and market impact — learn what investors should watch next.
Bitwise has filed to launch an exchange-traded product tracking Hyperliquid’s token as perpetual futures DEX volumes climb to record highs.
What is the Bitwise Hyperliquid ETF?
The Bitwise Hyperliquid ETF is a proposed exchange-traded fund registered via a Form S‑1 that would directly hold Hyperliquid (HYPE) tokens to provide investors with token exposure through a regulated trust. The filing indicates the product will support in‑kind creations and redemptions to allow shares to be exchanged for HYPE tokens.
How does Bitwise plan to structure in‑kind redemptions and creations?
Bitwise’s filing states the ETF will permit in‑kind creation and redemption, meaning authorized participants can exchange HYPE tokens for ETF shares and vice versa. In‑kind flows can lower transaction costs and reduce market impact compared with cash-only mechanisms. The SEC formalized guidance in July permitting in‑kind mechanisms for crypto products, which regulators said can be “less costly and more efficient.”
Why is this filing significant for on‑chain futures markets?
Bitwise’s application is notable because it would allow a mainstream asset manager to offer direct exposure to a native DEX token tied to perpetual futures trading volumes. The move signals growing institutional interest in tokenized exposure models similar to the Bitcoin and Ether ETFs launched last year.
What does the filing reveal about regulatory timing?
Bitwise submitted a Form S‑1 under the Securities Act of 1933; the ETF will also require a Form 19b-4 to start exchange listing approval with the SEC. The 19b‑4 process can take up to 240 days, though recent SEC approvals for generic listing standards have shortened timelines for assets with sufficient trading history on regulated swaps markets. Bitwise noted there are currently no Hyperliquid futures contracts registered with the CFTC, which may affect any accelerated pathway.
How does current market data compare between Aster and Hyperliquid?
On‑chain data shows sharp divergence in recent volume and open interest between Aster and Hyperliquid. Traders and market makers are watching whether Bitwise’s ETF filing changes liquidity patterns or token demand.
| Metric | Aster (ASTER) | Hyperliquid (HYPE) |
|---|---|---|
| 24h Volume (recent peak) | $35.8B (part of $70B DEX perpetual peak) | $10B |
| Open Interest (recent) | $1.15B | $2.2B |
| Short‑term token price move | — | Down ~3.5% to $42.5 |
Source: James Seyffart
When could the ETF trade and what remains unknown?
The S‑1 is the first step; after registration, Bitwise must secure exchange listing approval via Form 19b‑4. The filing does not disclose the intended listing exchange, ticker symbol, or fee schedule. Approval timelines depend on the SEC’s review and any outstanding questions about custody, market surveillance, and the availability of regulated derivatives tied to HYPE.
How might this affect HYPE token economics?
Direct ETF holdings could increase institutional demand for HYPE and change on‑chain token flows if authorized participants use in‑kind redemptions. That said, competitive pressure from other DEX tokens — and recent volume surges for Aster — will influence liquidity and price discovery. Data cited in the filing and on‑chain metrics should be monitored for shifts in supply/demand.
Frequently Asked Questions
Will the Bitwise Hyperliquid ETF hold HYPE tokens directly?
The filing indicates the trust will directly hold Hyperliquid (HYPE) tokens, with the ETF seeking to provide exposure to the value of HYPE held by the trust and enabling in‑kind flows for creation and redemption.
How long could SEC approval take for token ETFs?
After registration, the exchange’s Form 19b‑4 can trigger up to a 240‑day review period, though recent generic listing standards have shortened approvals for assets with adequate regulated trading history. Lack of CFTC‑registered Hyperliquid futures could affect timing.
What market data should investors watch?
Monitor 24‑hour trading volume, open interest, and on‑chain flows for both HYPE and competing tokens such as ASTER. Look at market surveillance metrics and liquidity in spot and derivative venues to assess ETF impact.
Key Takeaways
- Securities filing: Bitwise submitted an S‑1 to register an ETF that would directly hold HYPE tokens.
- In‑kind mechanics: The ETF proposes in‑kind creations and redemptions, which can reduce costs and tracking error.
- Market context: Recent volume surges on competing DEXs (notably Aster) will influence liquidity and timing for any ETF launch.
Conclusion
The Bitwise Hyperliquid ETF filing represents a significant step toward regulated, token-backed ETF exposure for HYPE. Investors should watch the Form 19b‑4 filing, custody disclosures, and on‑chain volume trends. COINOTAG will continue to monitor filings, market data, and regulatory developments and provide updates as the process unfolds.
