21Shares, a renowned issuer in the exchange-traded product space, has submitted regulatory paperwork for its latest offering: the Hyperliquid ETF. Aiming to bring the HYPE token into a familiar investment vehicle, this move signals growing institutional appetite for diverse crypto exposures.
Tracking the HYPE Token
The proposed ETF is designed to mirror the performance of the HYPE token, which plays a pivotal role in decentralized governance and liquidity incentives. By bundling HYPE into an ETF wrapper, 21Shares seeks to simplify access to token-based yield strategies for both retail and institutional investors.
Custody Solutions with Coinbase and BitGo
To safeguard assets, 21Shares will rely on Coinbase Institutional and BitGo, two custodial titans in the cryptocurrency space. Their combined infrastructure covers cold storage, multi-signature security, and comprehensive insurance coverage, underscoring the firm’s emphasis on protecting investor capital.
Broader ETF Market Implications
This latest filing arrives amid a flurry of applications for spot crypto ETFs, reflecting regulatory progress and market maturity. If approved, the Hyperliquid ETF could broaden the asset allocation toolkit, allowing investors to target token-specific protocols within a regulated framework.
Looking Ahead
With the application under review, 21Shares anticipates a potential launch within months of approval, subject to final SEC clearance. The Hyperliquid ETF may represent the first of several token-centric products poised to expand the cross-section of crypto assets in mainstream portfolios.