Hyperliquid News Today: SEC's Altcoin ETF Crossroads as 21Shares Bets on HYPE Token

21Shares, a Switzerland-based crypto asset manager, has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) tracking the HYPE token, the native asset of the Hyperliquid decentralized trading protocol. The move underscores growing institutional interest in altcoin exposure as the crypto market expands beyond Bitcoin and Ethereum. The filing, submitted on October 29, 2025, positions 21Shares as one of the first firms to pursue a regulated ETF tied to a non-major cryptocurrency, following the SEC's recent approvals of spot Bitcoin ETFs, a FinanceFeeds report.

The proposed 21Shares Hyperliquid ETF aims to provide investors with direct exposure to HYPE, which has surged over 15-fold in the past year, ZyCrypto reports. The token's price currently trades above $48.50, having gained 26% in the previous week, fueled by rising open interest in derivatives markets and increased whale activity, per an FXStreet analysis. On-chain data shows Hyperliquid's futures open interest climbed from $1.27 billion to $1.97 billion since October 11, signaling inflows of capital and bullish momentum. Analysts suggest the token could retest its September 18 record high of $59.46 if it breaks above the $51.15 resistance level.

The ETF filing aligns with a broader trend of institutional adoption. In recent weeks, Bitwise, Grayscale, and Canary Capital have launched ETFs tied to Solana, Litecoin, and Hedera, with Bitwise's Solana Staking ETF (BSOL) generating $72 million in trading volume on its second day, according to Yahoo Finance. These launches highlight Wall Street's appetite for altcoin-linked products, particularly as decentralized trading ecosystems like Hyperliquid gain traction. 21Shares' filing also follows its acquisition by crypto prime broker FalconX, which aims to integrate the firm's expertise in crypto ETFs with FalconX's brokerage platform, ZyCrypto reported.

The SEC's approval process remains uncertain. The agency, operating under reduced staffing due to a government shutdown, has yet to act on dozens of crypto ETF applications, ZyCrypto reported. If approved, the 21Shares HYPE ETF would mark a significant regulatory milestone, potentially paving the way for future altcoin-focused funds, FinanceFeeds noted. The firm has listed Coinbase Custody and BitGo Trust as custodians for the ETF's holdings, per Yahoo Finance, emphasizing compliance with security and storage standards.

Market participants view the filing as a catalyst for HYPE's price. Institutional demand, combined with Robinhood's recent listing of HYPE for U.S. retail trading, has amplified liquidity and accessibility, ICOBench reports. Technical indicators, including a bullish RSI and MACD crossover, further support near-term optimism, according to FXStreet. However, analysts caution that HYPE must break above key resistance levels to sustain its upward trajectory, ICOBench noted.