Asset manager 21Shares has submitted a filing with the U.S. Securities and Exchange Commission (SEC) on October 16, 2025, for a 2x leveraged HYPE ETF that aims to deliver double the daily returns of the Hyperliquid Index. The proposed fund, named the 21Shares 2x Long HYPE ETF, would replicate twice the daily performance of HYPE (HYPE) before fees and expenses, using swap agreements, options, and potentially Spot HYPE Exchange-Traded Products (ETPs) to achieve leverage without direct token custody.
The ETF structure employs a daily reset mechanism and relies on swaps to provide 200% exposure, eliminating the need for holding tokens directly. This approach allows institutional investors to gain leveraged access to the DeFi ecosystem while mitigating custody concerns. If approved, it would be the first U.S.-listed leveraged ETF tracking a live DeFi protocol's performance, with initial capacity estimates ranging from $500 million to $1.5 billion depending on market liquidity.
Meanwhile, the HYPE token is facing significant price pressure, testing crucial support between $34 and $35 after a nearly 10% drop in the last 24 hours. Technical indicators show bearish signals, including a MACD crossover with the MACD line at -3.19 below the signal line at -2.27, and an RSI suggesting further downside risk. If support fails, the price could decline to $30, but a break above $37.50 might signal a reversal.
This filing is part of a broader trend, with other asset managers like Bitwise and VanEck also pursuing HYPE-related ETFs. Bitwise has filed for a spot HYPE ETF with in-kind creation features, while VanEck is seeking approval for a staking ETF. Hyperliquid, the underlying decentralized exchange, has gained attention for surviving a $10 billion market selloff and posting record revenue. The platform's recent HIP-3 upgrade enables builders to create perpetual futures markets without centralized approval, and it has over 100 projects building on it, according to DefiLlama.
At a Coinbase summit attended by BlackRock executives, Jump Trading president Dave Olsen described Hyperliquid as the first meaningful competitor to Binance, highlighting its growing institutional appeal. The platform's Hyperliquidity Provider system, with over $500 million in deposits, and a $1.4 billion buyback reserve further underscore its resilience.
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