Hyperliquid ETF On The Horizon: 21Shares Submits HYPE Filing To US SEC
On Wednesday, 21Shares, the world’s largest issuer of cryptocurrency exchange-traded merchandise (ETPs), submitted a regulatory filing with the US Securities and Exchange Commission (SEC), searching for approval to launch a passive Hyperliquid ETF designed to trace the worth of the HYPE token.
21Shares’ Passive Hyperliquid ETF
Passive exchange-traded funds, just like the one proposed by 21Shares, are structured to trace the efficiency of a selected index or asset by holding it in constant proportions, slightly than actively choosing and managing investments.
This passive management approach usually leads to decrease expense ratios and decreased administration charges, as there is no such thing as a want for a extremely compensated portfolio supervisor to make frequent buying and selling choices.
Additionally, passive ETFs normally disclose their holdings each day, providing traders clear perception into the fund’s belongings. They are additionally recognized for his or her tax effectivity, as decrease portfolio turnover usually results in fewer capital beneficial properties taxes.
In its Hyperliquid ETF submitting, 21Shares introduced that it has chosen Coinbase (COIN) and BitGo as custodians for the Hyperliquid ETF. The Trust will maintain the HYPE token and assess its worth each day based mostly on a specified Pricing Benchmark.
Furthermore, 21Shares disclosed that it could discover different strategies for partaking in staking actions, particularly by means of liquid staking protocols (LSPs). These protocols permit for the issuance of a freely tradeable digital token, generally known as a “Liquid Staking Token,” which represents the HYPE staked with the protocol.
The Youngest Crypto Asset To Seek ETF Approval
Notably, the HYPE token is the youngest cryptocurrency asset to have an ETF software submitted so far, underscoring the rising curiosity from cash managers and establishments in gaining publicity to those digital belongings.
Additionally, HYPE has been among the many high performers since its launch again in November 2024, with a significant 1,140% surge since its market debut, with a market cap nearing the $13 billion market capitalization.
The US Securities and Exchange Commission (SEC) has acquired a wave of ETF filings associated to cryptocurrencies similar to Solana (SOL), XRP, and Dogecoin (DOGE) because the demand continues to rise all year long. However, it is very important notice that the approval course of for these quite a few crypto ETF functions stays pending.
The SEC is at present working with restricted employees as a result of a authorities shutdown, which has slowed down the evaluate course of. In September, the company did take away the final important barrier for a number of new spot ETFs linked to varied cryptocurrencies, paving the way in which for potential future approvals.
Despite the Hyperliquid ETF software, the HYPE token has did not react positively to the information with a 2% drop towards $46 within the 24-hour timeframe. This places the token 20% beneath its file peak of $59 reached earlier this 12 months.
Featured picture from DALL-E, chart from TradingView.com
