Bitwise S-1 Could Enable HYPE ETF With In-Kind Redemptions, SEC Review May Last Up to 240 Days

• Bitwise filed a Form S-1 to register a Hyperliquid ETF that directly holds HYPE tokens.

• The SEC review timeline for the proposed ETF may extend up to 240 days before a final determination.

• On-chain market data shows Aster’s daily volume at $35.8B vs Hyperliquid’s $10B, highlighting intensified competition.

Hyperliquid ETF news: Bitwise files S-1 for HYPE ETF with in-kind redemptions — track developments and SEC review timeline.

Bitwise filed with the SEC to launch a Hyperliquid ETF directly holding HYPE tokens with in-kind redemptions; the SEC review may last up to 240 days amid rising competition from Aster.

• 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 filed to launch a Hyperliquid ETF, submitting registration under the Securities Act of 1933 via Form S-1. The proposed fund would directly hold HYPE, offering investors token-native exposure and enabling in-kind creation and redemption mechanisms using HYPE tokens rather than cash.

What is the Hyperliquid ETF proposed by Bitwise?

The Hyperliquid ETF is a proposed exchange-traded fund by Bitwise that would directly hold HYPE tokens and allow in-kind share creations and redemptions. The structure differs from futures-based products by owning the underlying token, potentially lowering costs and improving settlement efficiency.

How does Bitwise’s Hyperliquid ETF work?

Bitwise’s filing indicates the ETF would maintain baskets of HYPE for authorized participants to exchange for ETF shares in-kind. This means authorized participants can deliver HYPE tokens to the fund to create shares or receive HYPE when redeeming shares, reducing cash settlement friction.

Bitwise submitted Form S-1 and will follow with a Form 19b-4 to begin the SEC’s formal listing review. The firm noted that no Hyperliquid futures contracts are currently registered with the Commodity Futures Trading Commission, which may influence the regulator’s timeline.

Why could the SEC review take up to 240 days?

The SEC’s process for exchange listings and new fund types can include in-depth review of custody, valuation, market surveillance, and settlement mechanisms. Bitwise’s reliance on in-kind token transfers adds operational and regulatory considerations that may extend review duration up to 240 days.

What are the market dynamics affecting the Hyperliquid ETF proposal?

Decentralized perpetual futures markets are rapidly evolving. Recent on-chain and market data show heightened activity from competitors, notably Aster. Per DefiLlama, total decentralized perpetual trading volumes reached a record $70 billion on the day of reporting.

CoinGlass data (reported as plain text) shows Aster’s open interest surged to $1.15 billion from $143 million days earlier, while Hyperliquid’s HYPE open interest eased 1.85% to $2.2 billion. Token metrics indicate HYPE’s circulating supply is ~270.8 million with a market cap near $11 billion.

Frequently Asked Questions

Will the SEC approve the Hyperliquid ETF?

Approval timelines vary; based on Bitwise’s filing and past practice, the SEC may take up to 240 days to decide, accounting for custody, surveillance, and settlement assessments.

How can investors access HYPE exposure now?

Investors can currently access HYPE on supported exchanges and decentralized platforms. A token-backed ETF would provide a regulated fund wrapper for exposure if approved.

Key Takeaways

• Direct token exposure: Bitwise’s ETF would hold HYPE tokens directly, not futures.
• In-kind settlements: The proposal uses in-kind creations and redemptions to improve efficiency.
• Regulatory timeline: SEC review could last up to 240 days; market dynamics and custody questions are key factors.

Conclusion

The Bitwise Hyperliquid ETF filing marks a notable step toward mainstreaming token-backed funds by proposing direct HYPE holdings and in-kind redemptions. Market competition from Aster and scrutiny over custody and surveillance will shape the SEC review. Watch for Form 19b-4 and regulator feedback as the process unfolds, and follow updates from COINOTAG for continued coverage.