Hyperliquid’s rise in DeFi is now moving into Wall Street’s playbook. Bitwise has filed an S-1 with the U.S. SEC to launch the first spot Hyperliquid (HYPE) ETF, a fund that would hold HYPE tokens directly and allow in-kind creations/redemptions. If approved, it could give U.S. investors regulated access to a token powering a platform with over $5.87 billion in total value locked (TVL) and more than $279 billion in 30-day trading volume.
With HYPE up 1,397% over the past year and now the #11 crypto by market cap valued at over $16.1 billion, the timing highlights both the demand for DeFi exposure and the race among issuers to bring new crypto ETFs to market. Coinbase Custody has been tapped as custodian, though key details such as the ticker, fees, and listing exchange remain undisclosed.
This article explores Bitwise’s spot Hyperliquid (HYPE) ETF filing with the SEC, a proposed fund that would give U.S. investors regulated exposure to the token behind the world’s largest on-chain perpetuals DEX. We break down how the spot HYPE ETF works, when it could launch, and the key risks to consider before investing in a Hyperliquid ETF product.
What Is a Spot Hyperliquid ETF and How Does It Work?
A spot Hyperliquid ETF is a regulated fund you can buy in a traditional brokerage account (e.g., Fidelity/Schwab) to track the price of HYPE, the token that powers Hyperliquid’s on-chain perpetuals ecosystem, without setting up a crypto wallet or managing private keys.
Bitwise’s proposed product is physically backed: the trust would hold HYPE tokens directly, not futures or swaps, so performance is meant to reflect HYPE’s market price minus fees. In plain English: you trade ETF shares like a stock, but the fund actually owns HYPE behind the scenes.
Bitwise's S-1 filing with the U.S. SEC for a spot Hyperliquid ETF | Source: SEC.gov
For beginners, the structure offers familiar brokerage rails, potential retirement-account eligibility, standard account statements, and consolidated tax forms, features many investors prefer versus using a self-custody wallet. Strategically, it extends the “spot crypto ETF” model beyond BTC/ETH into a DeFi-native asset tied to decentralized perps trading, one of crypto’s fastest-growing niches.
Note: A Swiss ETP tracking HYPE already trades in Europe via 21Shares “HYPE” on SIX, but that’s not a U.S. ETF.
Why the Bitwise HYPE ETF Matters Now
Hyperliquid TVL and perp volume | Source: DefiLlama
Crypto perps DEX activity has exploded. In late September 2025, decentralized perpetuals hit record weekly volumes of $70 billion, after $52 billion, $67 billion, and $70 billion over three consecutive days, with Aster on BNB Chain contributing $36 billion on the peak day.
Multiple reports also show days where Aster’s 24h volume of $24.7 billion – $36 billion and open interest up to $1.15 billion surpassed Hyperliquid, even as Hyperliquid retained higher multi-week totals, evidence of a hot, rotating market. A spot HYPE ETF would give mainstream brokerage users a regulated on-ramp into this growth area without touching on-chain infrastructure.
At the same time, the SEC’s generic listing standards as of September 2025 are catalyzing a wave of new crypto ETF filings, shortening approvals for qualifying assets and signaling broader regulatory willingness to list non-BTC/ETH exposures. That macro backdrop helps explain why issuers are pushing to be first in emerging segments like DeFi perps.
How Would the Bitwise HYPE ETF Work?
To understand what the ETF means in practice, here’s a breakdown of how the proposed Bitwise Hyperliquid ETF would actually operate:
1. Direct HYPE holdings. The trust’s net asset value (NAV) is driven by the actual HYPE it holds in custody. When new shares are created, Authorized Participants (large trading firms) deliver cash or HYPE to the trust; when shares are redeemed, the trust delivers cash or HYPE back, keeping the share price close to NAV.
2. In-kind creation/redemption. Bitwise’s filing enables in-kind flows: APs can swap ETF shares for real HYPE tokens (and vice-versa), which can reduce spreads and trading frictions, improve tracking versus spot HYPE, and lower taxable events at the fund level relative to all-cash flows, similar to the mechanism used by many spot BTC/ETH ETFs.
3. Coinbase Custody. Digital assets would be stored with Coinbase Custody Trust Company, a New York-chartered trust company frequently named in crypto ETF filings. Professional custody is a key operational safeguard for institutions and retail brokers accessing the product.
4. Regulatory pathway & timing. Bitwise filed an S-1 under the ’33 Act. Trading still requires an exchange 19b-4 rule change; typical SEC windows can stretch to ~240 days. The SEC’s new “generic listing standards” as of September 18, 2025 streamline some crypto ETP approvals, but notably favor assets with CFTC-regulated futures trading for ≥6 months. Bitwise’s risk factors acknowledge no CFTC-registered HYPE futures exist today, so the fast-track may not apply here. Expect a standard timeline unless rules evolve.
When Could Bitwise's Spot HYPE ETF Launch?
Bitwise submitted its S-1 registration statement on September 26, 2025, under the Securities Act of 1933, but the ETF cannot begin trading until an exchange also submits a Form 19b-4 rule change with the SEC. Under current rules, the SEC has up to 240 days to issue a decision, which sets an outside deadline around May 24, 2026.
During this review window, the Commission can pause the clock by issuing extensions, scheduling comment periods, or requesting revisions to the filing. In practice, that means investors are unlikely to see a decision before Q2 2026, with progress updates appearing through the SEC docket and official notices.
While the SEC did approve generic listing standards for spot crypto ETFs on September 18, 2025, which could speed up approvals in some cases, those rules apply primarily to tokens with CFTC-regulated futures trading history. Hyperliquid does not yet have registered futures contracts, meaning the fast-track pathway may not apply. As a result, the Hyperliquid ETF is still in the early stages of review, with no official launch date announced. The critical next step will be seeing which exchange files the 19b-4 form and how regulators respond.
Other Ways to Get Exposure to HYPE Before U.S. ETF Approvals
While the Bitwise Hyperliquid ETF is still months away from potential approval, investors already have several ways to gain exposure to HYPE. Depending on your location and risk appetite, you can trade it directly on BingX, access regulated products in Europe, or buy the token on-chain.
1. Trade HYPE on BingX
The most direct way to gain exposure today is by trading HYPE on BingX’s spot and futures markets.
HYPE/USDT trading pair on the spot market powered by AI Bingo
The simplest way to get started is by buying HYPE on BingX’s spot market. You can trade the HYPE/USDT pair just like any other cryptocurrency, with instant settlement and no expiration dates. Spot trading is ideal for beginners who want direct exposure to HYPE’s price and the flexibility to hold tokens as long as they choose. BingX also offers strong security protections, including two-factor authentication (2FA), withdrawal whitelist, and the BingX Shield Fund, so you can keep your assets safe.
HYPE/USDT perpetual futures contract powered by AI Bingo insights
For more advanced traders, BingX’s HYPE perpetual futures provide tools to speculate on price movements, hedge spot holdings, or amplify returns using leverage. Futures allow you to go long (profit if HYPE rises) or short (profit if HYPE falls), giving you flexibility in different market conditions. With 24/7 global access, deep liquidity, and BingX AI-powered trading signals, BingX makes it easier to manage risk and strategy. Keep in mind that leveraged futures trading carries higher risks, so it’s recommended to start small and use protective tools like stop-loss orders.
2. Buy 21Shares Hyperliquid ETP in Europe
Outside the U.S., professional and retail investors in eligible regions can access the 21Shares Hyperliquid ETP (ticker: HYPE, ISIN: CH1471826029), which is listed on the SIX Swiss Exchange. This exchange-traded product directly tracks HYPE’s price and charges a 2.5% annual fee. It is designed for brokerage accounts in Switzerland and other European markets, offering a regulated path to HYPE exposure without dealing with crypto wallets. Always confirm eligibility, product details, and associated costs with your broker before investing.
3. Buy HYPE Directly On-Chain
If you prefer maximum flexibility, you can buy HYPE directly through supported decentralized exchanges (DEXs) and non-custodial wallets and hold it in your own wallet. This path gives you full access to on-chain features such as governance, trading fee discounts on Hyperliquid, and potential integrations with DeFi apps. However, it also carries self-custody risks, so always verify official contract addresses, back up private keys, and use secure wallets. This route is best for users comfortable with blockchain transactions and risk management.
What Are the Risks of a Spot Hyperliquid ETF?
While a Hyperliquid ETF would make HYPE more accessible to mainstream investors, it also comes with unique risks that are important to understand before investing.
1. Regulatory timing risk. The SEC process could take months. Because no CFTC-regulated HYPE futures exist today, the ETF does not qualify for the fast-track approval process under the SEC’s new listing standards. This means the review period could stretch to the full 240-day window, with the potential for multiple extensions.
2. Structure risk. The filing does not yet disclose critical details such as the expense ratio, listing exchange, or tax treatment. These factors directly impact how closely the ETF tracks spot HYPE, as well as the total cost of ownership for investors. Any uncertainty here could make the fund less attractive compared to direct token exposure.
3. Market risk. Hyperliquid operates in a highly competitive DeFi sector, and its market leadership is not guaranteed. For example, rival Aster recently surpassed Hyperliquid in daily volume and open interest, showing how quickly dominance in perpetual DEX trading can shift. Such changes could affect HYPE’s price performance, and by extension, the ETF’s returns.
Conclusion: Should You Invest in a HYPE ETF?
The proposed Bitwise Hyperliquid ETF marks an important step in expanding access to DeFi-linked assets through regulated markets. If approved, it would give U.S. investors a familiar way to gain exposure to HYPE without managing private keys or navigating on-chain platforms. That said, the ETF is still under review, with no confirmed launch date, and carries uncertainties around regulatory approval, costs, and how closely it will track HYPE’s market price.
For now, investors who want direct exposure don’t need to wait. You can already buy and trade HYPE on BingX’s spot and futures markets, enjoying 24/7 access, deep liquidity, and advanced trading tools in a secure environment. Just remember: whether through an ETF or direct token ownership, HYPE remains tied to the volatile world of decentralized perpetuals trading. Always size positions carefully, use risk management tools, and stay updated on regulatory developments before making any investment decision.
FAQs on Bitwise Spot HYPE ETF
1. Is the Bitwise Hyperliquid ETF a true “spot” ETF?
Yes. Bitwise’s filing outlines a physically backed fund that would directly hold HYPE tokens in custody, with in-kind creation and redemption so shares can be swapped for actual tokens instead of just cash. This design is meant to closely mirror HYPE’s spot price.
2. Has the SEC approved the Hyperliquid ETF yet?
No. As of late September 2025, the ETF is still in the early stages of review. It requires both a Form S-1 registration and a Form 19b-4 exchange rule change, a process that can take up to 240 days with possible extensions before any trading approval is granted.
3. Why are the SEC’s new “generic listing standards” important for the Bitwise Hyperliquid ETF filing?
The new standards, approved in September 2025, are designed to streamline spot crypto ETF approvals—but only for assets with at least six months of trading on a CFTC-regulated futures market. Since HYPE has no CFTC-listed futures, the Hyperliquid ETF may not benefit from this fast-track option.
4. Is there any HYPE investment product already available?
Yes. In Europe, the 21Shares Hyperliquid ETP (ticker: HYPE, ISIN: CH1471826029) is listed on the SIX Swiss Exchange. It offers regulated access to HYPE in Switzerland and some EU markets, but it is not a U.S.-listed ETF and comes with a 2.5% annual fee.