21Shares Pursues SEC Blessing for HYPE ETF Amid Altcoin Frenzy 🤑

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Pray, lend thine ear to this most curious affair: 21Shares, that esteemed asset manager of late, hath submitted a petition to the venerated US Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) to track Hyperliquid’s native token, HYPE. A venture most bold, and perhaps the height of fashion in these crypto circles.

Such a filing joineth the ranks of a burgeoning multitude of altcoin ETF applications in 2025, a testament to the swelling appetite of institutions for regulated cryptocurrency exposure. One might speculate that even Lady Catherine de Bourgh herself would deem this a prudent investment, though we shall see.

21Shares’ Grand Expansion of Its Crypto ETF Portfolio: A New Hyperliquid Fund

On the 29th of October, 21Shares submitted its S-1 registration statement for the 21Shares Hyperliquid ETF. This fund, as the name suggests, aimeth to mirror the price of HYPE tokens without recourse to speculative trading, leverage, or derivatives. A most unassuming approach, one might say.

“The Trust, dear reader, is a passive investment vehicle that seeketh not to generate returns beyond tracking the price of HYPE tokens, the native digital asset of the Hyperliquid blockchain network,” the S-1 quaintly declares.

CSC Delaware Trust Company shall act as trustee, while Coinbase Custody and BitGo Trust Company shall serve as custodians, ensuring the secure storage of the fund’s digital assets. A most fortuitous arrangement, one might imagine.

21Shares further adviseth that it may explore staking a portion of its HYPE holdings to generate rewards, provided such endeavors comply with legal and tax requirements. A balancing act, indeed, between profit and prudence.

“While the Trust may stake a maximum of 100% of its HYPE holdings, the amount of HYPE that remaineth unstaked dependeth upon the Trust’s Utilization Rate analysis, and thus may vary. By historical data, the Trust intendeth to stake between 70% and 90% of its HYPE,” the asset manager quaintly added.

Details regarding the exchange listing and pricing benchmark remain shrouded in mystery, much like the contents of a well-sealed letter.

21Shares now joineth Bitwise, who filed a similar ETF last month, and VanEck, who hinteth at launching a HYPE ETF in both the US and Europe, possibly with staking. A most lively competition, one might say.

The Altcoin ETF Phenomenon: A Market Aflame With Demand 🔥

This latest filing coincideth with a veritable deluge of demand for altcoin products. The SEC, as of late October, revieweth over 150 such applications. Investors’ enthusiasm for altcoin ETFs was evident in this week’s debuts, a spectacle most thrilling.

On the 28th of October, Bitwise’s Solana ETF (BSOL) made its debut. On its first day, the product saw $56 million in trading volume, a figure most impressive among over 850 new ETFs in 2025. The following day, $72 million was traded, a sign of sustained interest. A most heartening tale!

$BSOL did more volume on Day Two… $72m is a huge number. Good sign.

– Eric Balchunas (@EricBalchunas) October 29, 2025

Canary Capital’s Hedera ETF (HBR) and Litecoin ETF (LTCC) also debuted on October 28. HBR posted $8 million in day-one volume, while LTCC saw $1 million. Both funds maintained similar trading levels on day two. A most steady performance, one might say.

“HBR and LTCC did about the same as their Day One ($8 million and $1 million respectively), which is still strong (most ETFs drop after day one hype is over),” Bloomberg’s senior ETF analyst Eric Balchunas stated.

This surge in ETF filings and launches marketh a maturing market, where regulated crypto products attract growing attention. With major issuers expanding beyond Bitcoin and Ethereum, investor demand shifteth toward broader exposure to emerging blockchain ecosystems. A most fascinating chapter in the annals of finance! 📜

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2025-10-30 09:50