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- 21Shares files ETF to track Hyperliquid’s fast-growing HYPE token.
- Falcon X acquisition boosts 21Shares’ reach in DeFi investments.
- SEC guidance opens faster approval path for new crypto ETFs.
Excitement is rising in the crypto market as 21Shares takes a bold step into decentralized finance. The firm has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission to launch an exchange-traded fund that tracks Hyperliquid’s native HYPE token. The action underscores 21Shares’ increasing desire to expand its range of digital assets investment products.
According to the filing, 21Shares US LLC will serve as the sponsor for the proposed ETF. The custodians have been listed as Coinbase Custody Trust Company, LLC, and BitGo Trust Company, Inc. The ETF has yet to be assigned a ticker symbol, but it will track the returns of HYPE, a Layer 1 blockchain-based token, which is part of the decentralized finance (DeFi) ecosystem.
As an indicator of the increased significance of DeFi, HYPE is now the sixteenth-largest cryptocurrency by market capitalization.
In September, Bitwise Asset Management had already submitted its own proposal for the Hyperliquid ETF. The improvement in filings is an indicator of the rising competition among asset managers that aim to introduce regulated crypto products to the market. Investors remain eager to support blockchain tokens, driving decentralized ecosystems.
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21Shares Expands Reach Amid Growing ETF Competition
The announcement is followed by the filing that prime broker Falcon X will purchase 21Shares. his acquisition is expected to merge Falcon X’s institutional trading infrastructure with 21Shares’ exchange-traded product expertise. Together, they plan to develop structured and derivative crypto funds that go beyond traditional spot offerings, according to The Wall Street Journal.
In the meantime, other companies, such as Grayscale, Bitwise, and Canary, have launched ETFs that track cryptocurrencies like Solana, Litecoin, and HBAR. This follows the second month-long government shutdown the United States is experiencing, which has resulted in a cut to SEC operations and the furlough of the majority of the staff.
However, the SEC has recently issued new guidance that enables companies to submit a Form S-1 registration without a postponement amendment, despite the SEC’s slowdown. This implies that it can launch new products within twenty days.
Prior to the shutdown, the SEC also accepted exchange listing criteria of commodity-backed trust shares, which allows crypto ETFs that address the requirements to be approved with less time.
Therefore, the recent suggestion by 21Shares puts it in a strong position in the emerging market of crypto-linked ETFs. The company aims to bridge the gap between traditional investors and one of the rapidly developing DeFi ecosystems by focusing on the Hype token of Hyperliquid.
The filing adds weight to the reason why established financial institutions are persistently incorporating blockchain innovation into regulated investment products.
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