Hyperliquid News Today: Institutional Demand Drives Altcoin ETF Growth as SEC Streamlines Approvals

The cryptocurrency ETF landscape is rapidly evolving, with 21Shares entering the fray by filing for a Hyperliquid ETF (HYPE) and Bitwise's Solana Staking ETF (BSOL) capturing market attention with robust performance. These developments underscore growing institutional interest in alternative cryptocurrencies and the SEC's shifting regulatory approach.

21Shares submitted its application for the Hyperliquid ETF to the U.S. Securities and Exchange Commission, aiming to track the HYPE token, which powers the Hyperliquid decentralized exchange (DEX) specializing in perpetual futures trading. The proposed ETF will utilize Coinbase Custody and BitGo as custodians, aligning with industry trends favoring regulated asset management. This follows a similar filing by Bitwise in September, marking HYPE as one of the latest altcoins to attract ETF interest, according to a Blockonomi report. HYPE, currently trading at $47.55 with a $12.7 billion market capitalization, has surged 32% over the past week, reflecting heightened demand, per a Coinotag analysis.

Meanwhile, Bitwise's Solana Staking ETF (BSOL) has become a standout performer. On its second trading day, BSOL recorded $72.4 million in volume, a 29% increase from its $56 million debut. Bloomberg analyst Eric Balchunas called this figure a "huge number," noting that most ETFs see volume declines after initial hype, according to a TradingView report. The fund attracted $69.5 million in first-day inflows, bringing total assets to $292 million, per a Yahoo Finance piece. Competitors like Grayscale's Solana Trust ETF (GSOL) and REX Osprey's SSK also entered the market, but BSOL's early traction highlights Solana's appeal as an institutional asset, as noted in a Sherwood report.

The Solana ETF race has intensified, with Grayscale launching GSOL on NYSE Arca at a 0.35% expense ratio, staking 74.89% of its holdings to generate yields (as previously reported). However, Balchunas noted that GSOL's $4 million debut volume paled in comparison to BSOL's performance, emphasizing the challenge of entering a crowded market, an Investor Empires note said. Bitwise's CIO, Matt Hougan, attributed BSOL's success to Solana's on-chain revenue leadership and institutional demand for staking-enabled products (as reported earlier).

The broader crypto market has also seen momentum. XRP, for instance, surged 88% from its monthly low, driven by inflows into XRP ETFs and rising CME futures open interest, according to a Crypto.news analysis. Bitcoin (BTC) also rebounded above $110,000, buoyed by $446.6 million in spot ETF inflows for the week ending October 24, per an FX Empire report.

Regulatory developments continue to shape the sector. The SEC's recent guidance allowing S-1 filings without "delaying amendments" has accelerated approvals, with over 90 crypto ETF applications pending, including proposals for Solana, Cardano, and Dogecoin, as reported by Coinotag earlier. While Bitcoin and Ethereum ETFs dominate with $155 billion and $23.4 billion in assets, respectively, a Yahoo Finance report highlights that altcoin ETFs are gaining traction as investors seek diversified exposure.

As the HYPE and Solana ETFs navigate regulatory scrutiny, their performance could signal a broader shift toward institutional adoption of alternative blockchains. With the SEC's decisions looming and market volatility persisting, the coming months will be pivotal for these products and the crypto ecosystem at large.