Cryptocurrency ETP issuer 21Shares has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tied to the Hyperliquid (HYPE) token. The filing, submitted on October 29, 2025, comes less than a day after the approval of other altcoin ETFs, positioning 21Shares alongside traditional asset managers like VanEck and Bitwise in seeking to offer innovative financial products for decentralized projects.
The proposed 21Shares Hyperliquid ETF is designed as a passive investment vehicle. It will not engage in speculative trading, leverage, derivatives, or short-selling. Instead, it aims to directly mirror the price performance of the HYPE token, adjusted for the fund's liabilities and operational costs. This structure is intended to provide investors with exposure to Hyperliquid's ecosystem growth without the need to manage private keys or interact directly with cryptocurrency exchanges.
The filing also notes the ETF may incorporate compliant staking activities, potentially offering additional earning opportunities for investors, underscoring 21Shares' focus on regulatory compliance and investor protection.
This development follows a significant capital raise for Hyperliquid itself. Earlier in October, Hyperliquid Strategies filed to raise $1 billion to support operations and accumulate HYPE tokens. Meanwhile, on-chain data reveals Hyperliquid has emerged as a major capital hub. Over the past three months, the network attracted roughly $12 billion in inflows, nearly matching Ethereum and placing it third behind Arbitrum and Ethereum. Notably, while other major chains like Ethereum, Solana, and BNB Chain saw double-digit declines in Total Value Locked (TVL), Hyperliquid's TVL grew by approximately 9% to over $2.3 billion.
Despite an 8% price dip over the past week, the HYPE token has gained more than 35% in the prior week and is up roughly 25% year-to-date, trading around $48.44 at the time of reporting. Derivatives data shows steady open interest near $1.12 billion and a return to positive funding rates, indicating growing bullish sentiment among traders.
