21Shares Files for SEC Approval of Hyperliquid ETF as Altcoin Market Activity Expands

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Cryptonewsland2025/10/30 14:24

By:by Wesley Munene

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21Shares filed for SEC approval to launch a Hyperliquid (HYPE) ETF amid rising institutional altcoin interest.
Bitwise’s Solana ETF led altcoin ETF trading with $72 million in second-day volume, signaling strong investor demand.
Bitcoin ETFs saw $470 million in outflows as BTC prices falled below $110K.

Swiss asset manager 21Shares has submitted an application to the U.S. Securities and Exchange Commission (SEC) seeking approval to launch a Hyperliquid (HYPE) exchange-traded fund (ETF). The filing arrives as institutional demand for altcoin-based investment products continues to accelerate across U.S. markets.

Asset Managers Compete for Altcoin ETF Market Share

The 21Shares proposed fund would track the performance of Hyperliquid’s native token , which powers the decentralized trading and blockchain network. Coinbase Custody and BitGo Trust are listed as custodians, but the document did not include details about a ticker symbol or management fee. The 21Shares proposal follows a recent filing from Bitwise for a similar Hyperliquid ETF, signaling intensifying competition among issuers.

Both filings reflect a broader trend of asset managers expanding beyond Bitcoin and Ethereum into decentralized ecosystem tokens. Hyperliquid’s HYPE token supports fee discounts on its trading platform and functions as the network’s gas token. Its value has climbed steadily in 2025 as trading activity and user participation increased.

Strong Trading Volumes Drive Investor Interest

According to a recent post on X by Eric Balchunas, trading data shows rising interest in altcoin-linked ETFs. Bitwise’s Solana Staking ETF (BSOL) generated $72 million in trading volume on its second day, after recording $55.4 million on launch. Bloomberg analyst Eric Balchunas described the performance as significant, noting continued investor participation after debut trading. BSOL’s performance has outpaced most digital asset ETF launches this year.

Source: X

In the same week, Canary Capital introduced ETFs tied to Litecoin (LTC) and Hedera (HBAR), both drawing substantial early demand. Grayscale also entered the market with its Solana Trust ETF (GSOL), which began trading with $4 million in volume. Analysts described GSOL’s figures as competitive, given its later debut compared to BSOL.

Bitcoin ETFs Experience Heavy Withdrawals

While altcoin ETFs like 21Shares have gained attention, Bitcoin exchange-traded funds reported sharp outflows. U.S.-listed spot Bitcoin ETFs recorded $470 million in withdrawals on Wednesday. A deeper view of the recent update by SoSoValue reveals that Fidelity’s FBTC led with $164 million in outflows, followed by ARK Invest’s ARKB at $143 million and BlackRock’s IBIT at $88 million.

Source: SoSoValue

As of press time, the cumulative total inflow is $61 billion, with $149 billion in assets under management, representing 6.5% of the BTC market cap. Bitcoin exchanged at a price value between $108,201 and $113,567 over the last 24 hours after dropping below $110,000. The dip in its value came despite a 25-basis-point rate cut by the Fed and followed the improving nature of the market after a successful bilateral meeting between U.S. President Donald Trump and China’s President Xi Jinping eased trade concerns.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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