Bitwise Seeks SEC Approval for Spot Hyperliquid (HYPE) ETF
Bitwise Asset Management has filed an S-1 registration with the U.S. SEC for a spot Hyperliquid (HYPE) ETF. The fund would directly hold HYPE tokens under Coinbase Custody Trust Company, allowing both cash and in-kind creations and redemptions without leverage or derivatives. Key details—exchange listing, ticker symbol and fee structure—remain pending SEC review and a Form 19b-4 filing, as Hyperliquid lacks CFTC-registered futures.
Hyperliquid is a Layer-1 blockchain powering a decentralized derivatives exchange. Its HYPE token underwrites platform fees, governance and incentives. Yet supply concerns loom: 237.8 million HYPE tokens vest monthly from November (approx. $500 million), while buybacks cover just 17% of the unlock. Former BitMEX CEO Arthur Hayes has sold his position. HYPE fell 1.5% on the filing day and 24% over the past week, trading near $42.
Institutional interest is rising. VanEck has proposed a spot-staking HYPE ETF in the U.S. and a related ETP in Europe, offering regulated staking rewards. Regulatory hurdles persist: the SEC has delayed several altcoin ETF applications. Approval of a spot Hyperliquid ETF would mark a milestone for institutional access to the HYPE token and broader mainstream adoption.
Neutral
Bitwise’s S-1 filing for a spot Hyperliquid ETF highlights growing institutional demand for HYPE token, especially alongside VanEck’s staking product, which could create new regulated inflows. However, the lack of CFTC-registered futures and a looming monthly unlock of approximately $500 million in HYPE tokens generate significant selling pressure. In the short term, token price may remain under pressure pending SEC approval and amid large unlock schedules. Over the longer term, successful ETF listing, staking demand and regulated custody could support HYPE token’s adoption and price stability. The offset between near-term supply headwinds and potential institutional demand balances to a neutral outlook.