21Shares has filed a Form S-1 with the SEC to create an ETF on Hyperliquid (HYPE), with Coinbase Custody and BitGO as institutional custodians.
Hyperliquid, a Layer 1 DeFi-focused protocol without MEV and low fees, has quickly risen to the top 20 market caps, attracting attention following Bitcoin, Ethereum, and Solana.
Despite the U.S. government shutdown, the SEC is now allowing accelerated filings, paving the way for a wave of ETFs while FalconX has acquired 21Shares to strengthen its institutional growth.
Hyperliquid, the DeFi Darling
The selection of Hyperliquid is strategic. The HYPE token is already among the top 20 market caps, driven by a Layer 1 blockchain tailored for DeFi applications. With speed, MEV-free execution, low fees, and a legendary DEX, the project appeals to traders and exchange protocols alike.
Back in September, Bitwise paved the way by filing their own ETF application for Hyperliquid. Now, 21Shares is taking the baton in a race where every manager aims to capture the next “institutional” token. The trend is clear: after Bitcoin, Ethereum, and Solana, traditional finance is now turning to 100% DeFi-oriented blockchains.
A Coordinated Offensive Despite Government Blockage
Irony strikes as this new wave of filings occurs during the U.S.’s second month of government shutdown, partially paralyzing the SEC. Yet, Grayscale, Bitwise, and Canary managed to launch their ETFs on Solana, Litecoin, and HBAR amid this backdrop.
The reason? Just days after the shutdown began, the SEC quietly released a procedural note allowing companies to file a Form S-1 without a “delaying amendment”, which typically postpones the fund’s implementation. As a result, new ETFs can be listed after just 20 days, without active SEC approval.
21Shares Soon in Another Dimension
This timing is no coincidence. Last week, FalconX, a major prime broker in the crypto market, finalized the acquisition of 21Shares. The goal is clear: to combine 21Shares’ global distribution and ETP expertise with FalconX’s trading and derivatives infrastructure.
In essence, the duo aims to go beyond simple spot ETFs to create structured and derivative crypto funds for institutional investors. The filing of the 21Shares Hyperliquid ETF is the first visible step towards this goal.
With the surge in crypto index products and the SEC temporarily easing its deadlines, Wall Street is experiencing an unprecedented acceleration. In this race, 21Shares seems determined to establish Hyperliquid as the next ETF star.
