Solana News Today: 21Shares Bids for HYPE Stake as Crypto ETFs Expand Beyond Bitcoin

21Shares, a prominent player in the cryptocurrency exchange-traded fund (ETF) space, has reportedly entered the bidding process for a stake in Hyperliquid's HYPE token, according to recent institutional market activity. This move comes amid a surge in demand for crypto-backed ETFs, highlighted by Bitwise Asset Management's successful launch of the first U.S. spot Solana staking ETF, which has drawn significant institutional capital, according to a Benzinga report. The Bitwise Solana Staking ETF (BSOL) debuted with $217.2 million in assets under management and $55.4 million in trading volume on its first day, outpacing expectations and signaling growing institutional confidence in Solana's (SOL) staking yields, CoinDesk reported.

The Solana ETF's performance has positioned it as a key contender in the expanding crypto ETF market. While Bitcoin and Ethereum ETFs dominated headlines earlier this year, the Solana product has carved out a niche by offering investors exposure to the blockchain's 7%+ average staking rewards, the Benzinga piece noted. Bloomberg ETF analyst Eric Balchunas observed that BSOL's debut volume—nearly half that of the REX-Osprey Solana + Staking ETF (SSK)—underscored its rapid institutional adoption. Meanwhile, Grayscale's upcoming Solana Trust ETF (GSOL), set to list on NYSE Arca, is expected to further diversify investor options, CoinDesk added.

Market participants are also closely watching 21Shares' interest in Hyperliquid's HYPE token. The firm's potential entry into the HYPE ETF space aligns with its broader strategy to expand beyond Bitcoin and Ethereum, a trend accelerated by the success of Solana's staking model, according to a Digital Journal article. Hyperliquid, a derivatives platform, has seen its token price rebound 9.43% in a single day following an SEC filing for a $1 billion public offering. The filing, which includes plans for token buybacks and ecosystem development, has drawn comparisons to the institutional-grade infrastructure seen in major crypto ETFs, the Digital Journal piece reported.

The broader crypto market remains in flux, with Solana testing critical support levels near $189 and Ethereum facing bearish positioning as short traders deploy over $650 million in leverage ahead of U.S.-China trade negotiations, according to a Yahoo Finance analysis. Despite these challenges, the Solana ETF's strong inflows suggest that institutional demand for high-yield staking opportunities is outpacing caution around macroeconomic risks, as noted in the Benzinga coverage.

Bitwise's CIO, Matt Hougan, has called the Solana ETF "a major institutional success," emphasizing the blockchain's leadership in on-chain revenue generation, as the Benzinga report highlighted. However, the product's 1.04% discount to net asset value on its debut—compared to stronger premiums for Bitcoin and Ethereum ETFs—has raised questions about market readiness for newer crypto assets, according to a Yahoo Finance report. Analysts attribute this to a combination of Solana's smaller market capitalization and broader market volatility, though the asset's 19% surge in daily trading volume to $7.5 billion indicates growing liquidity.

As 21Shares and other firms vie for a foothold in the next wave of crypto ETFs, the race to capture institutional capital in tokens like HYPE and Solana underscores a shifting landscape. With the U.S. Securities and Exchange Commission approving additional spot ETFs and staking models gaining traction, the sector's evolution could redefine how investors access blockchain-based assets, according to a Coinpedia analysis.