21Shares HYPE ETF Application: Rising Altcoin Demand

21Shares HYPE ETF Application

The asset manager 21Shares has filed an application with the U.S. Securities and Exchange Commission (SEC) to create an exchange-traded fund (ETF) that tracks the local token HYPE of Hyperliquid. This new initiative is part of a growing number of altcoin ETF applications in 2025, reflecting increasing institutional demand for regulated cryptocurrencies.

ETF Design and Features

In its S-1 registration statement submitted on October 29, 21Shares stated that the ETF designed to track the price of HYPE will operate without engaging in speculative trading or using leverage or derivative instruments. The statements in the application specify, "The fund is a passive investment vehicle that does not aim to generate returns beyond tracking the price of HYPE tokens, the native digital asset of the Hyperliquid blockchain network." Additionally, 21Shares is also evaluating the possibility of staking a portion of HYPE assets.

Related Developments

No official details have yet been disclosed regarding the stock listing and the pricing reference value that will track HYPE's market performance. However, 21Shares has joined Bitwise, which submitted a similar ETF application last month, increasing the competition in the altcoin space. We are also aware of VanEck's plans to launch an HYPE ETF in both the U.S. and Europe.

Increased Interest in Altcoin ETFs

The latest application was submitted during a period of heightened demand for altcoin products. As of the end of October, the SEC is reviewing over 150 applications. Notably, investor interest in altcoin ETFs was highlighted on October 28 with Bitwise's Solana ETF (BSOL), which achieved $56 million in trading volume on its first day, making it the best-performing of the new ETFs launched in 2025. Subsequently, on October 29, this interest continued, recording a trading volume of $72 million.

Canary Capital's Hedera ETF (HBR) and Litecoin ETF (LTCC) were also launched on the same day. HBR achieved $8 million in trading volume on its first day, while LTCC reached a volume of $1 million. Both funds managed to maintain strong trading levels on the second day.

Bloomberg's senior ETF analyst Eric Balchunas noted that HBR and LTCC traded at levels close to their first day's volume, emphasizing that this indicates strong performance.