Bitwise's HYPE ETF Encounters SEC Postponements and Competition from Decentralized Exchanges

Bitwise files prospectus for Hyperliquid ETF as SEC delays several ... [ 1 ] Bitwise Asset Management has submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC) in an effort to introduce a spot exchange-traded fund (ETF) that tracks HYPE, the native token of Hyperliquid. This marks the first ETF proposal aimed at providing direct exposure to HYPE, which is integral to the decentralized perpetual futures platform Hyperliquid. The ETF will be established as a Delaware statutory trust, physically holding HYPE tokens, with custody provided by

Custody Trust Company. The creation and redemption of shares will occur in-kind, following the same process as current and Ether ETFs, and the shares will be priced daily based on the token’s net asset value (NAV). The prospectus makes it clear that the ETF will not use derivatives or leverage, highlighting a focus on transparency and adherence to regulations.

Bitwise Files for Hyperliquid HYPE ETF: Here is Everyhting You … [ 2 ] The market responded quickly and positively to the news. HYPE’s price jumped 4% to $42.50 within hours, reflecting strong investor enthusiasm for the token’s potential acceptance by institutions. Experts observed that the ETF could enhance HYPE’s liquidity and help establish it as a rare non-Bitcoin, non-Ethereum asset in the ETF space. This initiative further cements Bitwise’s reputation as a leader in crypto asset management, having previously launched Bitcoin and

ETFs. For Hyperliquid, the ETF could speed up mainstream adoption by connecting DeFi assets with established financial systems.

Bitwise files S-1 for spot Hyperliquid ETF - cryptobriefing.com [ 3 ] Regulatory considerations from the SEC remain crucial. Although Bitwise’s application is a significant move toward approval, the SEC has postponed decisions on several alternative coin ETF proposals, such as spot SUI and PENGU funds from Canary, staked INJ and

funds, and Avalanche ETF proposals from Grayscale and VanEck. The SEC’s recent endorsement of broad listing standards for crypto ETFs—which allows for quicker approvals for assets traded on CFTC-regulated exchanges for at least six months—currently does not apply to Hyperliquid, since HYPE futures are not registered with the CFTC. Bitwise will need to submit a separate 19b-4 filing to begin the approval process, which could take as long as 240 days.

Bitwise Hyperliquid Etf 10K Annual Reports & 10Q SEC Filings [ 4 ] The application comes at a time of increasing rivalry among decentralized perpetual futures exchanges. Hyperliquid, a leader in on-chain futures trading, is facing competition from platforms like Aster, whose

Chain-based exchange recently overtook Hyperliquid in both trading volume and open interest. Data from DefiLlama shows Aster’s 24-hour volume hit $35.8 billion, more than triple Hyperliquid’s $10 billion. At the same time, Hyperliquid’s open interest dropped 1.85% to $2.2 billion, while Aster’s rose to $1.15 billion. Launching the ETF could strengthen Hyperliquid’s standing by offering regulated access to its token for traditional investors, potentially helping to stabilize its market share in the ongoing DEX competition.

Bitwise Bids for Spot Hyperliquid ETF Amid DEX Wars [ 5 ] The regulatory framework for digital assets remains fragmented, with both the SEC and CFTC seeking oversight. The CLARITY Act, which has passed the House, aims to clarify digital asset categories, defining “digital commodities” and giving the CFTC more authority. In contrast, the Senate Banking Committee’s Responsible Financial Innovation Act (RFIA) proposes a more limited approach, keeping more power with the SEC. This ongoing legislative debate adds complexity to the approval process for products like Bitwise’s HYPE ETF. Despite these hurdles, the filing demonstrates increasing institutional acceptance of DeFi’s importance in the financial sector, with Coinbase Custody’s involvement reflecting confidence in the token’s regulatory prospects.

Clarifying the CLARITY Act: What To Know About the … [ 6 ] The overall crypto market is set for growth, with analysts expecting more capital to flow in through exchange-traded products (ETPs) and new stablecoin regulations. Grayscale’s analysts have identified the CLARITY Act as a key driver for deeper integration between digital assets and traditional finance, while potential interest rate cuts by the Fed could further stimulate demand for cryptocurrencies. Pump.fun, another platform built on Solana, recently surpassed Hyperliquid in daily protocol revenue, highlighting the sector’s rapid innovation and volatility. If approved, Bitwise’s HYPE ETF would fit into this trend, providing a regulated option for investors looking to gain exposure to DeFi-native tokens as institutional involvement in the market continues to rise.