An exchange-traded product tracking Hyperliquid’s token is being considered for launch by Bitwise, as volumes on crypto futures exchanges hit a record high.
An exchange-traded fund that holds and tracks the token for the crypto perpetual futures protocol and blockchain Hyperliquid has been filed for by asset manager Bitwise.
The Bitwise Hyperliquid ETF, which the company is bidding to launch, would be designed to directly hold Hyperliquid (HYPE), a token that gives discounts on its decentralized exchange (DEX) and is used to pay fees on its blockchain.
The exchange on which the product would trade, the ticker, or the fees Bitwise will charge have not yet been identified in the filing.
Bitwise’s filing comes amid an intensifying contest between perpetual futures DEXs. A token was launched by Aster this month, whose trading volume and open interest have surged past Hyperliquid, which long held the top spot for onchain futures trading.
Hyperliquid ETF Set to Provide In-Kind Redemptions
The HYPE token will be directly held by Bitwise’s new ETF, according to a filing. The fund is designed to “provide exposure to the value of Hyperliquid,” mirroring the immensely popular Bitcoin and Ether ETFs that were released last year.
In-kind creation and redemptions will also be offered by the product, allowing shares in the fund to be exchanged for HYPE tokens instead of cash.
In July, in-kind creation and redemption for crypto products were permitted by the Securities and Exchange Commission, which called the process “less costly and more efficient.”
Filing Marks First Step Toward Launch
A Form S-1 was filed by Bitwise to register its ETF with the SEC under the Securities Act of 1933, the so-called “33 Act,” which allows the product to directly hold the crypto token.
A Form 19b-4 will also be required by the ETF to start the approval process with the agency. This process could take up to 240 days before a decision is made.
Generic listing standards for crypto ETFs were approved by the SEC earlier this month to eliminate the need for individual product assessments and speed up approvals. This is allowed if the underlying asset has been traded for six months on a CFTC-regulated exchange.
However, Bitwise’s filing noted that no Hyperliquid futures contracts are currently registered with the CFTC.
Aster Open Interest Soars, Tripling Hyperliquid’s Volume
A recent surge in trading volume and open interest, far above many of its rivals, has been experienced by Aster, a perpetual futures DEX native to the BNB Chain.
Hyperliquid’s $10 billion volume over the same period was more than tripled by the exchange’s $35.8 billion volume, according to DefiLlama. The exchange was a key driver of perpetual trading volumes on DEXs, hitting an all-time high of $70 billion on Thursday.
According to CoinGlass, an open interest of $1.15 billion was reached by the Aster (ASTER) token on Thursday, a significant rise from under $143 million just days earlier on Saturday, Sept. 20.
Meanwhile, a 1.85% decline was recorded in the HYPE token’s open interest over the past day, to $2.2 billion. Its price also dropped 3.5% to $42.5 during that period, according to CoinGlass.
