Asset manager Bitwise has submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) for a spot Hyperliquid (HYPE) exchange-traded fund (ETF), marking the first-ever proposal for a regulated ETF backed by a DeFi token. Filed on September 25, 2025, under Form S-1, the ETF would directly hold HYPE tokens, with Coinbase Custody serving as the asset custodian, mirroring the structure of approved Bitcoin and Ethereum ETFs. It also allows for in-kind creations and redemptions, reducing operational costs.
However, the SEC has simultaneously delayed decisions on multiple altcoin ETF applications, including those for XRP, Solana, Dogecoin, and Ethereum staking, pushing final rulings to November. These delays align with the SEC's cautious approach, despite new generic listing standards approved earlier in September that could shorten approval timelines to 60–75 days for qualifying assets. Bitwise acknowledged that HYPE does not meet these accelerated criteria, as there are no CFTC-regulated futures contracts for the token.
Market reaction was mixed: HYPE's price initially rose approximately 4% to over $42 following the news, but it later flattened, trading between $40.11 and $43.46 amid a multi-week downtrend. At press time, HYPE was down nearly 1% in 24 hours and over 25% weekly, attributed to profit-taking, competition from rival protocols, and concerns over an upcoming token unlock.