21Shares Plans to Offer 2x Leveraged ETF for Hyperliquid’s HYPE Token

Swiss asset manager 21Shares has submitted a filing with the U.S. SEC to launch a 2x leveraged HYPE ETF, aiming to double investors’ daily exposure to the Hyperliquid token. 

The proposed exchange-traded fund (ETF) would offer a high-beta option for traders looking to benefit from Hyperliquid’s growing popularity for on-chain crypto trading. If approved, it would become the first U.S.-listed leveraged ETF tracking the token performance of a DeFi protocol.

The filing builds on 21Shares’ previous product launches, including its DOGE ETF, and follows the listing of the HYPE ETP on the SIX Swiss Exchange. That European listing allowed institutional investors to access the token without managing crypto wallets or on-chain custody. 

The ETF follows a new kind of structure, using swaps instead of direct custody while introducing new funding and counterparty exposures. The initial capacity for this ETF is estimated between $500 million and $1.5 billion, depending on HYPE market liquidity. 

Growing interest in Hyperliquid ETFs

21Shares’ move follows similar filings by Bitwise and VanEck, both eyeing U.S.-listed HYPE ETFs. Bitwise’s product will hold HYPE tokens directly, while VanEck plans to integrate staking yields and potential buybacks linked to fund performance. 

Moreover, the latest HIP-3 upgrade on Hyperliquid also permits creators to create perpetual markets without centralized approval, which increases the liquidity and utility of HYPE.

As more investors adopt DeFi and these ETF filings, HYPE may be a major asset to investors to gain innovative exposure to crypto in the traditional markets.

Also Read: Hyperliquid and Binance’s Clash Over Token Listings Criteria