- 21Shares submitted a Form S-1 for a passive ETF tracking Hyperliquid’s HYPE token.
- Coinbase and BitGo are named as custodians for the fund’s holdings.
- The proposal arrives amid a wave of crypto ETF filings under tight SEC resources.
- Bitwise previously filed a similar HYPE ETF, signaling growing interest in the asset.
21Shares has filed a registration statement with the U.S. Securities and Exchange Commission for a new exchange-traded fund designed to track Hyperliquid’s native token, HYPE. The submission, made via a Form S-1, outlines a passive vehicle that would mirror the token’s price performance without engaging in active management.
According to the filing, the product would be called the “21Shares Hyperliquid ETF” and lists 21Shares US LLC as sponsor. While no ticker has been specified, the document notes that Coinbase and BitGo would serve as custodians, signaling a focus on established infrastructure for asset safekeeping.
What 21Shares filed
The proposed fund seeks to offer U.S. investors straightforward exposure to HYPE through an exchange-listed share, sidestepping the operational hurdles of holding the token directly. The sponsor describes the ETF as passive, aiming to track HYPE’s value rather than select investments to outperform it.
In its risk disclosures, the filing underscores that owning and transacting in digital assets like HYPE differs materially from traditional securities such as stocks or bonds, highlighting distinct market structure, custody, and regulatory considerations.
Key service providers and structure
The document names Coinbase, the largest U.S. crypto exchange by trading volume, and BitGo Trust Company as custodians responsible for safeguarding the fund’s HYPE holdings. This pairing reflects a common approach among recent crypto-focused ETFs that lean on specialized digital asset custody.
As a passive product, the ETF would track the underlying asset by holding it in set proportions, rather than employing active selection or tactical strategies. This structure is intended to reduce tracking error and keep the fund closely aligned with HYPE’s market price.
Context and competing proposals
The 21Shares submission follows an earlier proposal by Bitwise to launch its own Hyperliquid ETF. Together, these plans indicate rising institutional interest in offering regulated access to HYPE via public markets, even as approvals remain pending.
More broadly, the SEC is processing a large queue of crypto-related ETF applications. While each product must clear its own regulatory review, the increased pace of filings reflects growing demand among investors for diversified digital asset exposure through familiar brokerage accounts.
About Hyperliquid and HYPE
Hyperliquid operates as a decentralized exchange focused on perpetual futures and on-chain trading. HYPE is the network’s native token and has grown into a top-tier digital asset by market capitalization, supported by the platform’s expanding user base and liquidity.
For prospective ETF investors, the appeal lies in getting HYPE exposure without managing wallets, private keys, or on-chain transactions. At the same time, the filing reiterates that pricing, volatility, and liquidity dynamics in crypto markets can differ substantially from those in traditional asset classes.
Regulatory backdrop
The filing lands during a period in which the SEC has offered guidance on registration mechanics and continues to evaluate numerous crypto ETF proposals. Even amid staffing constraints, the agency has been engaging with issuers as they navigate disclosure, custody, and market structure topics germane to digital assets.
Recent industry developments have also spotlighted how commodity-trust style structures and clear custody frameworks can streamline the path for crypto funds to reach public markets, though timelines and outcomes vary case by case.
21Shares’ corporate footing
Founded in 2018, 21Shares oversees more than $11 billion in assets across dozens of products in the U.S. and Europe. The company recently agreed to be acquired by institutional broker FalconX, a move expected to deepen capabilities across trading, derivatives, and distribution for digital asset investment products.
The combination aims to pair 21Shares’ ETF expertise with FalconX’s infrastructure, potentially accelerating the development of new, risk-adjusted vehicles tailored to institutional preferences as the market broadens beyond the largest crypto assets.
Why this matters for investors
Exchange-traded access has proven attractive to many market participants who prefer brokerage accounts and traditional market hours over direct crypto custody. The success of spot digital asset funds has shown that familiar wrappers can lower operational friction, though they do not eliminate the inherent risks of the underlying assets.
If approved, the 21Shares Hyperliquid ETF would add another avenue for exposure to a highly traded on-chain ecosystem, while consolidating custody and execution behind regulated providers. Still, as the filing notes, performance will be driven by HYPE’s own market dynamics, not by active portfolio decisions.
What comes next
The SEC will review the S-1, and the product cannot launch unless the registration becomes effective. In the meantime, issuers and regulators typically engage on disclosures, risk factors, and operational details to ensure that the fund structure and documentation meet the agency’s standards.
For now, the 21Shares proposal marks an incremental but notable step in bringing Hyperliquid exposure to public markets. With competing filings in the mix and the regulatory calendar in flux, the timeline will hinge on the SEC’s review process and any subsequent amendments requested by the staff.
All told, 21Shares is positioning a passive, custodial-backed vehicle that tracks HYPE without direct token handling, leaning on Coinbase and BitGo for safekeeping while the SEC weighs the application amid broader interest in regulated crypto access.
