TLDR
- Bitwise filed the first ETF proposal to track Hyperliquid’s HYPE token with the SEC
- HYPE token fell 11% to $40.51 with an $11 billion market cap, ranking as 21st-largest cryptocurrency
- SEC delayed action on several altcoin ETF proposals including SUI, PENGU, INJ, SEI, and Avalanche funds
- Competition heats up as Aster DEX surpassed Hyperliquid in trading volume, reaching $35.8 billion vs $10 billion
- The ETF would offer in-kind redemptions and directly hold HYPE tokens, requiring both S-1 and 19b-4 filings for approval
Crypto asset manager Bitwise Investment Advisers has submitted the first exchange-traded fund proposal to track Hyperliquid’s native HYPE token. The S-1 filing with the Securities and Exchange Commission represents a new step in expanding crypto ETF offerings beyond Bitcoin and Ethereum.
NEW: @BitwiseInvest files for Hyperliquid ETF. HYPE pic.twitter.com/l3WaXRmo8Z
— James Seyffart (@JSeyff) September 25, 2025
Hyperliquid operates as a Layer 1 blockchain designed for decentralized finance applications. The platform focuses primarily on perpetual futures trading through its decentralized exchange.
The HYPE token serves multiple functions within the ecosystem. It provides trading fee discounts on the decentralized exchange and pays transaction fees on the blockchain network.
HYPE experienced price pressure during the filing period. The token dropped 11% to $40.51 over 24 hours according to market data.
The cryptocurrency maintains a circulating supply of 270.8 million tokens. With its current price, HYPE holds an $11 billion market capitalization, making it the 21st-largest cryptocurrency by market value.
Regulatory Landscape Remains Complex
The SEC delayed action on multiple altcoin ETF proposals during the same period. Canary’s spot SUI and PENGU fund applications face extended review timelines.
The regulator also postponed decisions on Canary’s staked INJ and SEI fund proposals. Spot Avalanche ETF applications from Grayscale and VanEck received similar treatment.
Dozens of crypto-related ETF filings currently await regulatory approval. The backlog reflects ongoing regulatory uncertainty in the digital asset space.
Hashdex expanded its existing crypto ETF to include XRP and Solana. This move followed the SEC’s recent approval of broader listing standards for cryptocurrency products.
Competition Intensifies Among DEX Platforms
Trading competition among perpetual futures platforms has increased substantially. Aster launched its token earlier this month and quickly gained market share from established players.
Aster’s trading volume surged past Hyperliquid’s performance metrics. The BNB Chain-native platform processed $35.8 billion in 24-hour volume compared to Hyperliquid’s $10 billion.
Open interest data shows Aster’s rapid growth trajectory. The platform’s open interest reached $1.15 billion on Thursday, up from under $143 million on September 20.
Hyperliquid’s open interest declined 1.85% to $2.2 billion over the same period. The established platform has long held the leading position in onchain futures trading.
Total perpetual trading volumes across decentralized exchanges hit $70 billion on Thursday. This represents an all-time high for the DEX futures market.
The Bitwise filing includes standard ETF features for institutional investors. The fund would offer in-kind creation and redemption mechanisms, allowing shares to be exchanged for actual HYPE tokens rather than cash.
The SEC approved in-kind creation and redemption for crypto products in July. Regulators described this structure as more cost-effective and efficient for market participants.
Bitwise must file additional paperwork before launch can proceed. The company needs Form 19b-4 approval to begin the formal SEC review process, which can take up to 240 days.
The filing notes that no Hyperliquid futures contracts currently exist on CFTC-regulated exchanges. This may complicate the approval timeline under recent SEC guidance for crypto ETFs.
