Hyperliquid ETF filing by 21Shares adds to growing crypto fund

TLDR

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21Shares filed Form S-1 with the SEC for a new Hyperliquid ETF.
Coinbase and BitGO will act as custodians for the Hyperliquid ETF.
Bitwise also filed a similar ETF proposal tracking Hyperliquid’s HYPE.
The filing follows Grayscale and Canary’s latest crypto ETF launches.

A new exchange-traded fund proposal has entered the growing crypto ETF race. 21Shares, one of the largest digital asset product issuers, has filed for a Hyperliquid ETF with the U.S. Securities and Exchange Commission (SEC). The filing comes during a surge of crypto fund launches by major players such as Grayscale, Bitwise, and Canary, signaling continued institutional interest despite regulatory slowdowns.

21Shares Submits Form S-1 for Hyperliquid ETF

According to a filing with the SEC on Wednesday, 21Shares US LLC submitted a Form S-1 registration statement for the proposed 21Shares Hyperliquid ETF. The fund will track the performance of Hyperliquid’s native HYPE token, which currently ranks as the 16th largest cryptocurrency by market capitalization.

The ETF does not yet have an assigned ticker symbol. Coinbase Custody Trust Company and BitGO Trust Company will serve as custodians for the fund. These firms are among the most established crypto custodians in the United States, known for providing secure storage and compliance services for digital assets.

21Shares’ move follows Bitwise’s September filing for a similar Hyperliquid ETF. This growing interest in Hyperliquid-based products reflects the token’s expanding role in decentralized finance. Hyperliquid operates as a Layer 1 blockchain focused on high-speed trading and liquidity within DeFi ecosystems.

Recent Activity Among Crypto Fund Managers

The filing comes as several asset managers move forward with launching crypto ETFs covering a range of tokens. This week, Grayscale, Bitwise, and Canary launched new funds tracking Solana, Litecoin, and HBAR. These filings mark another step toward broader crypto market access through regulated financial products.

The timing of these filings is notable as the U.S. government remains in its second month of shutdown. The SEC continues to function with limited capacity, and many of its staff are furloughed. Despite the restrictions, companies have been able to file registration statements without waiting for immediate feedback from the regulator.

A recent SEC guidance allowed firms to file Form S-1 documents without a “delaying amendment.” This change enables ETF issuers to go live with their products after a 20-day waiting period, even during the shutdown.

FalconX to Acquire 21Shares

Last week, prime brokerage firm FalconX agreed to acquire 21Shares in a deal expected to enhance both firms’ capabilities in crypto product development. The partnership aims to merge 21Shares’ expertise in exchange-traded products with FalconX’s trading and infrastructure services.

According to reports, the combined company plans to introduce derivative-based and structured crypto funds. These products would expand beyond traditional spot ETFs, catering to investors seeking diversified exposure to digital assets.

The acquisition underscores a broader consolidation trend in the crypto industry, as asset managers and trading firms look to strengthen their positions ahead of potential regulatory clarity.

Regulatory Context and ETF Outlook

Before the government shutdown, the SEC approved listing standards proposed by three U.S. exchanges. The changes allowed exchanges to list certain commodity-based trust shares, including crypto ETFs, under clearer rules. This approval opened the door for multiple fund issuers to bring their products to market faster.

With these updates in place, firms such as 21Shares are pushing ahead with new filings to secure early positions in the expanding ETF landscape. If approved, the 21Shares Hyperliquid ETF would join a growing list of crypto-focused funds designed to offer investors regulated exposure to blockchain assets.

As the market awaits further SEC actions, the pace of ETF launches shows that institutional interest in digital assets remains steady.