TLDR
- 21Shares filed with the US SEC for a 2x leveraged HYPE ETF that would deliver double the daily returns of the Hyperliquid Index
- Three asset managers have now filed for different Hyperliquid ETF products, including Bitwise’s spot ETF and VanEck’s staking ETF
- Hyperliquid survived a $10 billion market selloff and posted its strongest revenue month while gaining attention from Wall Street firms
- Jump Trading president called Hyperliquid the first real competitor to Binance at a Coinbase summit attended by BlackRock executives
- Platform’s HIP-3 upgrade allows qualified builders to create perpetual futures markets without centralized approval
21Shares submitted a filing with the US Securities and Exchange Commission for a 2x leveraged HYPE ETF. The product would deliver double the daily returns of the Hyperliquid Index.
21Shares filing for a 2x HYPE ETF. This is the kind of filing where you're like man, that is SO niche, idk.. but then you could look up in 3-4yrs it's got a few billion. Just a total land rush right now, just like with themes, curr hedging and smart beta in eras past. pic.twitter.com/7UiLP5AlnK
— Eric Balchunas (@EricBalchunas) October 17, 2025
The proposed fund amplifies investor exposure by 200%. It targets traders who want to capitalize on Hyperliquid’s growing on-chain activity.
Bloomberg ETF analyst Eric Balchunas said the filing is “so niche it might just win.” He compared the move to early booms in smart beta and currency-hedged products.
If approved, this would be the first US-listed leveraged ETF tracking a live DeFi protocol’s performance. The structure uses swaps instead of custody, introducing new layers of funding and counterparty exposure.
Analysts estimate initial capacity could reach $500 million to $1.5 billion. The exact amount depends on liquidity conditions in HYPE markets.
The 21Shares filing follows the firm’s recent launch of its DOGE ETF on the DTCC platform. In Europe, 21Shares listed a HYPE ETP on the SIX Swiss Exchange, giving institutional investors access without requiring wallets or on-chain custody.
Multiple Asset Managers Compete for HYPE ETF Listings
21Shares is not alone in pursuing a Hyperliquid ETF. Last month, Bitwise filed for an HYPE ETF designed to hold the native token directly.
The Bitwise product includes in-kind creation and redemption features. This allows shares to be swapped for HYPE tokens instead of cash.
VanEck applied for a spot staking Hyperliquid ETF in the US alongside a parallel European ETP. The firm hinted at integrating staking yields and potential HYPE buybacks tied to fund performance.
The race among asset managers comes as Hyperliquid draws increased attention from traditional finance. Paradigm backed an $888 million Nasdaq-listed fund to hold HYPE, giving institutions exposure without using the exchange directly.
Platform Survives Major Selloff While Gaining Wall Street Interest
Hyperliquid recently experienced a $10 billion market selloff that left many investors stunned. The platform continued operating throughout the event.
The two-year-old decentralized exchange was built by a team of 15 engineers in Singapore. Despite its small size, it has already outperformed Coinbase in certain areas.
At a Coinbase summit, Jump Trading president Dave Olsen called Hyperliquid “the first meaningful competitor” to Binance. Executives from BlackRock and Coatue attended the event.
The platform uses its Hyperliquidity Provider system with more than $500 million in deposits. HLP acts as an automated trading vault that provides liquidity by continuously posting buy and sell quotes.
During the recent market rout, the HLP made $40 million while many traders faced losses. The platform’s auto-deleveraging system kicked in to absorb losses by cutting into profitable positions.
Hyperliquid’s financial model uses trading fees to buy back HYPE tokens. The Assistance Fund handling these buybacks has built a $1.4 billion reserve.
The platform runs on 24 validators compared to Ethereum’s one million. The Hyper Foundation controls nearly two-thirds of staked HYPE, giving it substantial governance power.
Hyperliquid Labs recently told the US Commodity Futures Trading Commission that its perpetuals meet and sometimes exceed US market safeguards. The platform’s HIP-3 upgrade went live, allowing qualified builders to create perpetual futures markets without centralized approval.
Over 100 projects are now building on Hyperliquid according to DefiLlama. The new upgrade lets wealthy users launch custom perpetual futures markets in minutes by staking millions in HYPE as collateral.
