Crypto asset manager 21Shares has filed for a new exchange-traded fund (ETF) that would track the performance of Hyperliquid’s HYPE token, adding to a growing list of digital asset funds entering the market this week.
According to a filing submitted Wednesday morning, 21Shares US LLC lodged a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for the proposed 21Shares Hyperliquid ETF. The fund does not yet have an assigned ticker symbol. Custody services for the ETF will be handled by Coinbase Custody Trust Company, LLC and BitGO Trust Company, Inc., two of the most established names in crypto asset security.
The move follows a similar filing by Bitwise, which proposed its own Bitwise Hyperliquid ETF in September. Hyperliquid’s HYPE token ranks as the 16th largest cryptocurrency by market capitalization, according to data, and operates as a Layer 1 blockchain purpose-built for decentralized finance (DeFi) applications.
The filing comes shortly after FalconX, a prime brokerage firm, announced its plan to acquire 21Shares. The acquisition aims to merge 21Shares’ expertise in exchange-traded products (ETPs) with FalconX’s trading and brokerage capabilities, paving the way for more sophisticated crypto investment products. The partnership signals a broader industry shift toward structured and derivative-based crypto funds, as firms seek to diversify beyond standard spot ETFs.
Meanwhile, this week has seen an ETF boom across the crypto sector. Firms such as Grayscale, Bitwise, and Canary have launched new ETFs tied to cryptocurrencies like Solana (SOL), Litecoin (LTC), and HBAR. These developments come as the U.S. government remains in its second month of a partial shutdown, which has limited the SEC’s operations and furloughed much of its staff.
Despite these challenges, the SEC recently issued guidance allowing firms to file Form S-1 registrations without a delaying amendment, enabling ETFs to go live 20 days after filing. Prior to the shutdown, the SEC had approved new listing standards for crypto-based trust shares, streamlining the process for exchanges to list and trade digital asset funds.
The combination of regulatory progress and heightened market activity suggests that crypto ETFs are entering a new phase of rapid expansion, even amid political and operational uncertainty in Washington.
