Bitwise Files for Hyperliquid HYPE ETF Amid Token Unlock Pressure
Bitwise Asset Management has filed an S-1 with the US SEC to launch a Hyperliquid HYPE ETF, directly holding HYPE tokens under Coinbase Custody Trust Company with both cash and in-kind creations and redemptions. The spot ETF will not use leverage or derivatives, though listing exchange, ticker and fee structure await SEC review. New SEC guidance may speed approval but standard review applies since Hyperliquid lacks CFTC-registered futures, and Bitwise must file Form 19b-4. Hyperliquid is a Layer-1 for decentralized futures, with HYPE powering fees, incentives and governance. The project faces competition from Aster and heavy supply pressure from 237.8 million HYPE unlocking from November (~$500 million/month), while buybacks cover only 17%. Former BitMEX CEO Arthur Hayes sold his HYPE before the unlock. SEC delays on altcoin ETFs (Pengu, AVAX, SEI) highlight regulatory headwinds. HYPE has slid about 1.5% on the day and is down 24% weekly, trading near $42—well below its mid-September peak of $58 as markets digest US GDP revisions. The SEC’s feedback on the Hyperliquid HYPE ETF filing and other altcoin ETF decisions will be key drivers for short-term price action and long-term adoption.
Bearish
While the ETF filing for a Hyperliquid HYPE ETF underscores growing institutional interest and ease of access, the looming supply pressure from large token unlocks, limited buyback coverage, regulatory uncertainty from SEC delays on similar altcoin ETFs, and recent risk-off price action suggest continued downward pressure on HYPE. In the short term, token unlock-induced selling and pending SEC decisions will likely drive volatility and weigh on the price. In the long term, approval of the Hyperliquid HYPE ETF could boost institutional adoption, but only if regulatory hurdles are overcome and supply concerns are addressed. Therefore, the overall impact is bearish.