21Shares has taken another step toward launching a U.S.-listed Hyperliquid ETF, signaling how the exchange-traded fund race is rapidly expanding beyond Bitcoin and Ethereum.
The firm submitted a second amended registration statement to the U.S. Securities and Exchange Commission this week, outlining plans for a fund tied to Hyperliquid’s native token. If approved, the product would trade on Nasdaq under the ticker THYP.
A New Type of Crypto ETF Structure
The proposal stands out for its design. Unlike earlier ETFs that primarily track price, the 21Shares structure introduces staking as a core feature.
According to the filing, the fund plans to stake between 30% and 70% of its HYPE holdings, depending on utilization and market conditions.
That approach could allow the ETF to generate yield alongside price exposure, shifting the model closer to income-generating financial products rather than passive trackers.
Hyperliquid’s Rise Draws Institutional Attention
Hyperliquid’s growth is a key driver behind the ETF push. The decentralized derivatives platform has reached more than $193 billion in monthly trading volume and is generating nearly $880 million in annualized protocol fees, based on market estimates cited in reporting from The Block and TronWeekly.
This level of activity has positioned Hyperliquid as one of the most prominent onchain venues for perpetual futures trading, attracting attention from both retail and institutional participants.
ETF Competition Is Heating Up
The filing also highlights intensifying competition. Bitwise Asset Management has submitted its own amended proposal for a HYPE ETF under the ticker BHYP, while Grayscale Investments is pursuing a competing product.
Bitwise has already disclosed a 0.67% management fee, adding an early layer of pricing transparency to the race.
Meanwhile, 21Shares revealed it purchased two seed shares at $50 each in March and plans to acquire 20,000 shares at $25 per share as an initial seed basket ahead of launch.
Staking May Redefine ETF Expectations
The inclusion of staking reflects a broader shift in crypto investment products. Early ETFs focused on custody and price tracking, but newer filings are exploring ways to incorporate onchain income streams.
Industry observers increasingly see staking-enabled ETFs as a bridge between traditional finance and blockchain-native yield mechanisms.
This evolution introduces a new dimension of competition—funds may differentiate not only on fees and liquidity, but also on how effectively they capture staking rewards.
Market Reaction: Structural Shift Over Immediate Impact
So far, the market response has been measured. ETF filings typically influence sentiment over longer timeframes rather than triggering immediate price movement.
However, the growing number of altcoin ETF proposals suggests a structural shift in how institutional capital approaches crypto exposure.
Tokens like HYPE are moving from niche trading assets toward vehicles for regulated financial products.
Investor Psychology: From Exposure to Income
The emergence of staking ETFs reflects changing investor priorities. Traditional participants entering crypto markets are no longer focused solely on price appreciation.
Instead, there is increasing demand for predictable yield and income-like characteristics, aligning crypto products more closely with familiar financial instruments.
This shift could reshape how capital flows into different blockchain ecosystems.
What Comes Next
The next step lies with regulatory review. The SEC must evaluate the structure, risk disclosures, and operational mechanics before approving any listing.
At the same time, additional filings tied to assets like Solana, XRP, Sui, and Hyperliquid indicate that the ETF pipeline is expanding rapidly.
If approvals follow, the market could see a new category of crypto ETFs centered on both price exposure and onchain yield.
The 21Shares Hyperliquid ETF proposal highlights a turning point in crypto finance, where staking and active structures are beginning to redefine ETF design. As competition intensifies and regulators weigh approvals, the focus is shifting from simple exposure to how value is generated within blockchain ecosystems.
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