21Shares has advanced its Hyperliquid exchange-traded fund filing with a second amended S-1, signaling ongoing engagement with the SEC (US). The update brings the proposed product closer to becoming the first spot ETF tied to Hyperliquid’s native token, HYPE.
The filing, submitted Tuesday, outlines plans to list the fund on Nasdaq under the ticker “THYP.” It also details early seeding activity, including the purchase and redemption of initial shares, and a planned $500,000 seed creation basket to acquire HYPE ahead of launch. The document does not disclose a sponsor fee.
Will Staking Inside ETFs Reshape Crypto Fund Design?
The proposed structure includes staking between 30% and 70% of the fund’s HYPE holdings, based on utilization analysis. This introduces a yield-generating component not present in most existing spot crypto ETFs. By comparison, traditional Bitcoin spot ETFs do not stake underlying assets, limiting returns strictly to price exposure.
Competition in the segment is intensifying as multiple asset managers pursue similar products. Bitwise has filed a comparable ETF expected to trade under “BHYP” with a 0.67% management fee, while Grayscale has also submitted an application. The clustering of filings suggests rising institutional interest in onchain derivatives infrastructure.
“Based on Utilization Rate analysis applied to historical data, the Trust generally intends to stake between 30% and 70% of the HYPE it holds,” the filing stated.
The allocation may vary depending on market conditions, indicating an actively managed staking approach within the ETF wrapper.
Hyperliquid, a decentralized perpetuals exchange, has emerged as a leading onchain trading venue, with its token ranking among the top 15 by market capitalization at approximately $10.4 billion. The proposed ETF would offer regulated exposure to this ecosystem, bridging decentralized finance and traditional capital markets.
Regulatory response will be the key variable, particularly around staking mechanics within registered investment products. The next catalyst will be whether the SEC provides feedback on staking disclosures or requests structural changes before approving any HYPE-linked ETF.
