The altcoin space is heating up after the debut of Solana, Litecoin, and Hedera exchange-traded funds.
Less than a day following the approval, crypto ETP issuer 21Shares filed an S-1 with the United States SEC to launch a Hyperliquid exchange-traded fund.
21SHARES FILES S-1 FOR HYPERLIQUID ETF
The October 29 filing has gained traction as it positions 21Shares among traditional companies, including VanEck and Bitwise, seeking to launch innovative financial products tied to emerging decentralized projects.
The HYPE ETF aims to provide cryptocurrency enthusiasts and investors direct exposure to the native token without actively managing their holdings.
Earlier in the month, Hyperliquid Strategies filed to raise $1 billion to support operations and accumulate HYPE tokens.
Understanding 21Shares’ HYPE ETF
The filing emphasises that 21Shares’ Hyperliquid ETF will be a passive investment product.
That means the exchange-traded fund won’t participate in speculative trading or try to outperform the market.
It will only mirror HYPE’s price performance, adjusted based on the fund’s liabilities and operational costs.
Precisely, the ETF will rally amid HYPE gains, and vice versa.
It suits investors looking for exposure to Hyperliquid’s ecosystem growth without handling private keys, cryptocurrency exchanges, or digital wallets.
Most importantly, the 21Shares HYPE ETF will not employ derivatives, leverage, or short-selling approaches, prioritising risk management and transparency.
The Trust will not utilize leverage, derivatives, or any similar arrangements in seeking to meet its investment objective.
Such strategies align with 21Shares’ ethos of offering cryptocurrency-tied financial instruments that are accessible and easy to understand for investors, regardless of their skills and background.
An ETF focused on price performance
While actively managed funds may buy low and sell high in an attempt to meet their monetary goals.
HYPE ETF only tracks the altcoin’s price actions.
It will use a Pricing Benchmark, which reflects HYPE’s market price across multiple cryptocurrency exchanges, to measure the fund’s performance.
Furthermore, the ETF leaves room for staking incentives, which will likely mean more earning opportunities for investors.
Nevertheless, the filing clarified that it will only support compliance staking activities.
Such developments demonstrate 21Shares’ dedication to investor protection and regulatory compliance.
HYPE price outlook
The digital token is currently hovering at $48.44, maintaining a bullish stance after gaining more than 35% in the previous week.
HYPE’s daily trading volume has increased by more than 17%, signalling optimism.
Bullish news like Robinhood listing HYPE and the 1B public offering fuel the alt’s upside trajectory.
Bulls are targeting mid-September all-time highs of $58, a roughly 20% surge from the current market price.
Anticipated bull runs in the coming weeks and months will likely supercharge HYPE’s recovery to previous ATHs.
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