21Shares has filed an application with the SEC to launch an exchange-traded fund (ETF) tied to the price and rewards of the Hyperliquid (HYPE) token. If the regulator gives the green light, investors will be able to access the token without having to hold it directly.
This is another step by 21Shares towards integrating DeFi protocols into traditional markets. The new ETF will replicate the behavior of the HYPE token using derivatives such as options and swaps. This will allow the company to recreate the token’s movements on the blockchain within a classic financial model.
The HYPE ETF could open the way for institutions to on-chain perpetuals
According to the application filed today with the SEC, the 21Shares fund is also considering using spot ETP on Hyperliquid to more accurately track the token’s on-chain activity and staking yield. This approach allows institutional investors to access HYPE without having to hold the token directly, while meeting all custody and regulatory requirements.
This application follows an earlier initiative by 21Shares. On October 16, the company filed documents to launch a 2x leveraged ETF aimed at doubling the daily return of the Hyperliquid index. The document is currently awaiting approval. If approved, 21Shares will become the first asset manager in the US to bring to market a leveraged ETF tracking the yield of a DeFi protocol in the futures segment.
Hyperliquid is a layer-one blockchain with an on-chain derivatives exchange. The total trading volume on the platform has already exceeded $3 trillion. The network’s unique architecture eliminates gas fees and provides high liquidity thanks to an automated market maker, making the platform attractive for institutional trading.
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Professional investors are already eyeing the project, attracted by decentralized perpetual markets. The appeal lies in the transparency of Hyperliquid and its scalable infrastructure. The ETF from 21Shares could be a convenient way for them to enter DeFi without issues related to on-chain access and custodial risks.
According to SoSoValue, in October, US spot ETFs on Bitcoin and Ether attracted over $5.47 billion in net inflows. BTC led the way with $4.57 billion, while ETH saw $933 million. Such capital inflows from institutions show that regulated crypto funds are becoming an increasingly popular diversification tool.
US crypto support and SEC reforms spark a wave of new ETF applications
SEC has simplified listing rules for spot crypto ETFs and reduced the application review period from 240 to 75 days. These changes, combined with growing crypto-friendliness from the Trump administration, have encouraged asset managers to expand their fund lineups. Now they are looking not only at Bitcoin and Ether, but also at Solana, XRP and new ecosystems like Hyperliquid.
But leverage products and derivatives always carry increased risk. For example, the 2X Leverage HYPE ETF, while giving institutions access to DeFi, may face liquidity and counterparty risks in swaps. The 21Shares application emphasizes that the product is designed for active traders and institutional teams working with short-term exposure, not for long-term investments.
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Currently, 21Shares manages about $11 billion in assets and operates on several exchanges in Europe and Switzerland. Bloomberg analyst Eric Balchunas called the ETF on HYPE niche, but “potentially scalable”. According to him, similar funds in the past have already grown to billions in volume.
Now it’s up to the SEC: the commission must approve the ETF structure, including its work with Hyperliquid. As for the leveraged version, it has received a preliminary effective date of December 20, 2025, but is still under initial review. The dual approach of 21Shares, with both regular and leveraged versions of the fund, could become a new way to combine DeFi and the traditional financial sector. It all depends on what the regulator decides.
