21Shares Hyperliquid HYPE ETF Highlights Growing Institutional Crypto Interest
21Shares, a prominent crypto asset manager, has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) tracking Hyperliquid’s native token, HYPE. This move highlights the growing institutional appetite for regulated cryptocurrency exposure beyond major assets like Bitcoin and Ethereum.
A Passive ETF with Potential Staking Opportunities
According to the filing submitted on October 29, 2025, the 21Shares Hyperliquid ETF is designed as a passive investment vehicle, aiming solely to track the price of HYPE tokens without engaging in speculative trading, leverage, or derivatives. CSC Delaware Trust Company will serve as trustee, while Coinbase Custody and BitGo Trust Company will manage the secure storage of the fund’s digital assets.
The filing also hints at potential staking strategies, where a portion of HYPE holdings may be staked directly or via third-party providers, depending on legal and tax compliance. Historically, the fund plans to stake between 70% and 90% of its HYPE holdings, based on Utilization Rate analysis, while keeping some tokens unstaked to optimize liquidity.
The Broader Altcoin ETF Trend
This filing comes amid a wave of altcoin ETF launches in 2025, signaling strong market demand for broader crypto exposure. The SEC is reportedly reviewing over 150 altcoin ETF applications. Recent examples include Bitwise’s Solana ETF (BSOL), which recorded $56 million in trading volume on its first day, followed by $72 million on October 29, and Canary Capital’s Hedera (HBR) and Litecoin (LTCC) ETFs, which also maintained strong early trading volumes.
As more issuers like VanEck and Bitwise explore ETFs tied to emerging blockchain ecosystems, investor focus is shifting beyond traditional cryptocurrencies. The 21Shares Hyperliquid ETF represents a strategic step in expanding regulated institutional access to the next generation of altcoins.
