Bitwise's HYPE ETF Faces SEC Delays and DEX Rivalry

Bitwise files prospectus for Hyperliquid ETF as SEC delays several ...^[1] Bitwise Asset Management has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) tracking Hyperliquid’s native token, HYPE. The proposal marks the first ETF to seek exposure to HYPE, a token central to the decentralized perpetual futures exchange Hyperliquid. The fund is structured as a Delaware statutory trust, physically backed by HYPE tokens, and custodied by Coinbase Custody Trust Company. Shares will be created and redeemed in-kind, mirroring the mechanics of existing Bitcoin and Ether ETFs, and will be valued daily based on the token’s net asset value (NAV). The filing explicitly states that the ETF will not involve derivatives or leverage, emphasizing transparency and regulatory compliance.

Bitwise Files for Hyperliquid HYPE ETF: Here is Everyhting You …^[2] Market reactions to the filing were immediate and positive. HYPE surged 4% to $42.50 within hours of the announcement, signaling strong investor interest in the token’s potential for institutional adoption. Analysts noted that the ETF could expand HYPE’s liquidity while legitimizing it as one of the few non-Bitcoin, non-Ethereum assets to enter the ETF conversation. The move underscores Bitwise’s role as an innovator in crypto asset management, with the firm previously pioneering Bitcoin and Ethereum ETFs. For Hyperliquid, the ETF could accelerate adoption by bridging decentralized finance (DeFi) assets with traditional Wall Street infrastructure.

Bitwise files S-1 for spot Hyperliquid ETF - cryptobriefing.com^[3] The SEC’s regulatory environment remains a key factor. While Bitwise’s filing is a critical step toward approval, the agency has delayed action on multiple altcoin ETF proposals, including spot SUI and PENGU funds from Canary, staked INJ and SEI funds, and Avalanche proposals from Grayscale and VanEck. The SEC’s recent approval of generic listing standards for crypto ETFs—allowing faster approvals for assets traded on CFTC-regulated exchanges for six months—does not currently benefit Hyperliquid, as no HYPE futures contracts are registered with the CFTC. Bitwise’s ETF will require a separate 19b-4 filing to initiate the approval process, which could take up to 240 days.

Bitwise Hyperliquid Etf 10K Annual Reports & 10Q SEC Filings^[4] The filing occurs amid intensifying competition in decentralized perpetual futures exchanges. Hyperliquid, which dominates on-chain futures trading, faces challenges from rivals like Aster, whose BNB Chain-based platform recently surpassed Hyperliquid in trading volume and open interest. According to DefiLlama, Aster’s 24-hour volume reached $35.8 billion, tripling Hyperliquid’s $10 billion. Meanwhile, Hyperliquid’s open interest fell 1.85% to $2.2 billion, while Aster’s surged to $1.15 billion. The ETF could bolster Hyperliquid’s position by providing traditional investors with regulated exposure to its token, potentially stabilizing its market share in the DEX wars.

Bitwise Bids for Spot Hyperliquid ETF Amid DEX Wars^[5] The regulatory landscape for crypto assets remains fragmented, with the SEC and CFTC vying for jurisdiction. The House-passed CLARITY Act seeks to clarify digital asset classifications, defining “digital commodities” and assigning oversight to the CFTC. However, the Senate Banking Committee’s competing Responsible Financial Innovation Act (RFIA) proposes a narrower framework, retaining more authority for the SEC. This legislative uncertainty complicates the approval process for products like Bitwise’s HYPE ETF. Despite these challenges, the filing reflects growing institutional recognition of DeFi’s role in finance, with Coinbase Custody’s involvement signaling confidence in the token’s regulatory viability.

Clarifying the CLARITY Act: What To Know About the …^[6] The broader crypto market is primed for expansion, with analysts anticipating increased inflows from exchange-traded products (ETPs) and stablecoin-related legislation. Grayscale’s research team highlighted the CLARITY Act as a catalyst for deeper integration between crypto and traditional finance, while Fed rate cuts could further boost demand for digital assets. Pump.fun, another Solana-based platform, recently surpassed Hyperliquid in daily protocol revenue, underscoring the sector’s volatility and innovation. Bitwise’s HYPE ETF, if approved, would align with this trend, offering a regulated vehicle for investors seeking exposure to DeFi-native tokens in a market increasingly driven by institutional participation.