- Bitwise has submitted S1 for an ETF tracking HYPE.
- It would be the first ETF tied to a perp DEX token.
- Approval could see Hyperliquid exploding to new highs.
$15B asset manager Bitwise seems prepared for the next chapter of digital finance.
The company has filed with the US Securities & Exchange Commission for an exchange-traded fund (ETF) tracking Hyperliquid’s native coin, HYPE.
BITWISE FILED FOR A HYPERLIQUID ETF
ANY $HYPE BULLS STILL AROUND? pic.twitter.com/UdReTcfzAI
— 0xMarioNawfal (@RoundtableSpace) September 25, 2025
The S-1 application gained traction as a HYPE ETF would be the first of its kind, offering market players regulated access to a perpetual decentralized exchange token.
That signals the growing influence of DeFi and increasing pressure on Wall Street to expand cryptocurrency offerings beyond the top Bitcoin and Ethereum.
Understanding Hyperliquid
Hyperliquid is a decentralized platform designed specifically for DeFi undertakings.
While traditional blockchains often incorporate multiple use cases, Hyperliquid zeroes in on perpetual futures (perps) trading – a derivatives product that’s gaining remarkable attention in the cryptocurrency markets.
Notably, perps allow traders to speculate on future prices of assets without expiry dates.
That has made them attractive to institutions and experienced traders seeking heightened liquidity and flexibility.
Most importantly, Hyperliquid boasts a high-frequency infrastructure that handles the market with speed and efficiency.
This has seen the DEX create a sought-after niche in the blockchain industry.
Bitwise’s HYPE ETF application reflects confidence in the broader cryptography technology and Hyperliquid’s role in the future of decentralized finance (DeFi).
A exchange-traded fund approval would be a game-changer for US investors and the DEX.
Hyperliquid might boom to levels that the BitMEX co-founder predicted as institutional players join.
Pension funds, retail broker accounts, and hedge funds will have a regulated exposure to HYPE via a familiar product: the ETF.
Americans will gain frictionless access to a high-frequency decentralized asset, something that has been somewhat intimidating for non-crypto-native investors.
Everyday investors can use brokerage apps to buy into the altcoin’s exposure without the hurdles of creating wallets and exploring DEXs.
Challenges ahead
While the application stirred optimism, approval remains far from guaranteed.
The US SEC has taken a cautious approach to cryptocurrency ETFs, often citing concerns like investor protection, liquidity, and market manipulation.
Furthermore, Bitwise’s filing comes as the regulator delays its decision on multiple altcoin exchange-traded funds, including Pengu, Avalanche, and Sei.
🚨 JUST IN: The SEC has postponed decisions on the Canary Spot Pengu, Grayscale Spot Avalanche, and Canary Spot Staked Sei ETFs. pic.twitter.com/pY828lU62o
— Crypto Briefing (@Crypto_Briefing) September 25, 2025
Moreover, questions linger whether the SEC can endorse an ETF of an asset with a primary utility linked to high-risk perpetual trading.
The regulator will likely prioritize balancing investor safety and innovation when reviewing the application.
HYPE price action
The alt lost 0.2% in the past day to hover at $42.43.
HYPE has declined from its mid-September all-time highs of $58.
Meanwhile, its current outlook mirrors ongoing broader market declines.
Cryptocurrencies extended their downside yesterday after the US revised GDP data .
Bitcoin trades below $110,000 as cryptocurrencies follow September’s history of bearish performance.
