- 21Shares files with the SEC for a 2x HYPE ETF that tracks the daily returns of the Hyperliquid Index.
- The ETF uses swaps and avoids token custody by using a traditional regulated structure.
- Hyperliquid upgrade boosts utility as ETF issuers explore new products tied to on-chain performance.
21Shares has submitted a filing to the U.S. Securities and Exchange Commission (SEC) for a 2x leveraged HYPE ETF. The proposed fund will offer double the daily returns of the Hyperliquid Index. It aims to give traders increased exposure to a fast-growing DeFi protocol.
This filing marks the latest move by 21Shares to expand its crypto-related offerings in the U.S. market. The ETF would be the first of its kind to track a live decentralized protocol using a leveraged structure. It builds on earlier thematic products launched by the firm.
Assuming the approval, the ETF might attract investors seeking increased returns that are associated with on-chain trading. The building presents a high-beta exposure, which is designed to be used in short-term tactical trades.
Unique Design Combines Swaps With Daily Resets
The 2x HYPE ETF will use swaps to replicate performance, rather than holding tokens directly. This structure avoids token custody, which remains a regulatory challenge. It also wraps the fund in a traditional 1940 Act-compliant format, with daily rebalancing.
Analysts highlight the innovation in tying Hyperliquid’s perpetual futures system into a U.S.-regulated ETF. The move adds complexity, including swap funding risks and counterparty exposure.
Expected capacity ranges from $500 million to $1.5 billion, depending on underlying liquidity in the HYPE market. The ETF’s structure sets it apart from past offerings that held spot tokens or used cash settlements.
Competition Rises as Asset Managers Rush to Market
Several asset managers have moved to capture early exposure to Hyperliquid-linked products. Bitwise filed for an HYPE ETF last month. That product proposes direct token holding with in-kind redemption, bypassing cash settlements.
VanEck also filed for a spot Hyperliquid ETF in the U.S., alongside a similar product in Europe. Its strategy includes staking rewards and buyback options. These elements aim to tie fund performance directly to protocol activity.
The 21Shares filing reflects growing interest in on-chain finance within traditional markets. Demand for higher risk-reward profiles continues to draw attention to newer protocols like Hyperliquid.
European Listings Signal Growing Institutional Access
Outside the U.S., 21Shares recently listed the HYPE ETP on the SIX Swiss Exchange. The listing enables institutional investors to gain exposure without blockchain interaction. No wallets or private keys are required.
This came as Hyperliquid posted its strongest revenue month so far. Rising protocol fees and user activity have added to investor interest. A recent upgrade, HIP-3, introduced permissionless perpetual market creation.
Builders can now launch derivatives directly, without centralized approval. The change could expand HYPE’s utility and appeal, reinforcing its position in ETF strategies.
