21Shares is taking another major step into the world of decentralized finance with a new ETF proposal tied to the Hyperliquid blockchain and its native token, HYPE.
Key Takeaways
- 21Shares filed a Form S-1 with the SEC to launch the Hyperliquid ETF, offering exposure to the HYPE token.
- HYPE is the 16th largest cryptocurrency and powers Hyperliquid, a Layer 1 blockchain built for DeFi applications.
- The filing follows a wave of crypto ETF launches, including products from Grayscale, Bitwise, and others.
- DeFi metrics are showing renewed strength, with Hyperliquid’s total value locked rising over 10 percent in a single week.
What Happened?
On October 29, 2025, 21Shares submitted a Form S-1 registration to the U.S. Securities and Exchange Commission (SEC) proposing the creation of the 21Shares Hyperliquid ETF. If approved, this exchange-traded fund would give regulated access to Hyperliquid’s ecosystem and its native token, HYPE. Coinbase Custody Trust Company and BitGO Trust Company were named as custodians in the filing.
The ETF news comes as the crypto sector witnesses renewed institutional interest and multiple new ETF filings.
The @21shares management fund is applying for a $HYPE spot ETF in the United States.
— Hyperliquid News (@HyperliquidNews) October 29, 2025
S/O: @NMTD8 pic.twitter.com/FEpCGJOgRE
21Shares Expands Amid Rising Crypto ETF Interest
21Shares, one of the largest managers of exchange-traded products, is positioning itself as a key player in the next generation of crypto finance. The Hyperliquid ETF proposal follows a similar application from Bitwise earlier this year, and adds to a wave of activity in October, when firms like REX Shares and Osprey Funds submitted more than twenty ETF-related proposals.
This filing also comes shortly after prime broker FalconX announced its acquisition of 21Shares. The partnership is expected to combine FalconX’s trading infrastructure with 21Shares’ ETP expertise, potentially leading to a broader suite of derivative and structured crypto products.
Recent regulatory developments have accelerated ETF filings. The SEC, despite being affected by a government shutdown, issued guidance that allows firms to launch ETFs after 20 days if no delaying amendment is included in their Form S-1. In addition, pre-shutdown approvals of listing standards by three exchanges have further simplified the ETF launch process for crypto-focused funds.
Hyperliquid’s Strength in DeFi Boosts Appeal
Hyperliquid is recognized for its strong trading infrastructure, particularly in derivatives. It is also offering standout returns. According to data from RR2 Capital, the protocol’s liquidity provider vault APR currently stands at 160 percent, outperforming other decentralized exchanges in the perpetuals market.
In parallel, broader decentralized finance metrics are showing signs of recovery. Thirteen blockchain networks each hold more than one billion dollars in total value locked (TVL), and Hyperliquid’s TVL grew by 10.9 percent in just one week. This was the highest among major platforms and signals growing confidence in DeFi protocols.
Price Momentum Aligns With Market Optimism
The HYPE token has rebounded strongly from October lows around $33, driven by both technical and fundamental factors. Analysts note a classic cup-and-handle chart pattern, often seen as a bullish signal. With $45 as a key level to hold and $49 as the breakout point, targets now range toward $60 if buying pressure continues.
The 21Shares ETF filing reinforces market sentiment, aligning institutional interest with rising retail enthusiasm. Robinhood also recently added Hyperliquid to its trading platform, further boosting exposure and liquidity in U.S. markets.
CoinLaw’s Takeaway
In my experience, a well-timed ETF filing can serve as a major confidence boost for any digital asset. What stands out here is how 21Shares is not just launching a new fund, but doing it in the middle of a larger institutional push into DeFi. With Hyperliquid showing impressive fundamentals, a strong TVL uptick, and massive yields, it is no surprise that HYPE is getting attention from both retail and institutional sides. I found the combination of technical price signals and actual usage data particularly compelling. This ETF could be the bridge that finally brings traditional capital deeper into decentralized finance.
