Bitwise Files for Spot Hyperliquid ETF in the Face of Increasing Perp DEX Market Competition
The filing to establish an exchange-traded fund that will directly own and monitor Hyperliquid's token (HYPE) is a significant...
Quick overview
- Bitwise has filed to establish an ETF that will directly own and monitor Hyperliquid's HYPE token, allowing investors to gain exposure without holding the token themselves.
- The proposed ETF will function similarly to existing BTC and ETH ETFs, offering in-kind creation and redemption of HYPE tokens.
- Bitwise's filing comes amid rising competition in the perpetual futures DEX market, particularly from the new rival Aster, which has seen significant trading volume growth.
- The success of the ETF will depend on regulatory approval and Hyperliquid's ability to compete in a rapidly changing market.
The filing to establish an exchange-traded fund that will directly own and monitor Hyperliquid’s token (HYPE) is a significant step made by asset management Bitwise. It is a blockchain system and DEX that specializes in trading everlasting futures. In addition to giving customers with trade discounts the token is utilized to pay blockchain costs.
Investors would have exposure to the HYPE token’s value through the Bitwise Hyperliquid ETF, a proposed product without having to purchase and hold it themselves. This action is taken at a time when perpetual futures DEXs are experiencing fierce competition and significant growth.
🚨BREAKING: Bitwise has filed a prospectus for a #Hyperliquid ETF, while the SEC pushes back decisions on multiple altcoin proposals. pic.twitter.com/uwSQkqgOsS
— Coin Bureau (@coinbureau) September 26, 2025
What the ETF Will Offer
The filing claims that the ETF will function similarly to the popular BTC and ETH ETFs that were introduced last year and will directly hold HYPE tokens. Furthermore the ETF will provide in-kind creation and redemption. As a result investors can now trade their ETF shares for real HYPE tokens rather than just cash.
This technique was just approved by the U.S. SEC which said it was “more efficient and less costly” for cryptocurrency funds. For investors seeking more adaptable cryptocurrency popularity, this permission is viewed as a significant victory.
The Process for Filing
Bitwise registered the product in accordance with the Securities Act of 1933 by submitting under Form S-1. As a result, the fund can now directly hold the cryptocurrency token. The SEC’s review procedure is formally began by Form 19b-4, which is another form that must be approved for the ETF. It could take 240 days for permission.
The process was facilitated earlier this month when the SEC approved general listing rules for crypto ETFs. Fast-tracking is now possible for products linked to cryptocurrency assets that have traded on an exchange licensed by the Commodities Futures Trading Commission (CFTC) for at least six months.
However, Bitwise might face difficulties because the CFTC does not currently have any Hyperliquid futures contracts registered. This may delay or complicate approval.
Rising Competition from Aster
The move by Bitwise also coincides with increased competition in the perpetual futures DEX market. Although it has long been a dominant force in on-chain futures trading, Hyperliquid has recently seen a decline in market share.
There has been a remarkable increase in trade activity for Aster, a new rival that uses the BNB Chain. DefiLlama reports that Aster led the charge as permanent DEX trade volumes reached an all-time high of $70 billion on Thursday. Over three times as much was traded in a 24-hour period as Hyperliquid, with a total of $35.8 billion.
According to CoinGlass data, open interest in the Aster token the total value of outstanding contracts rose sharply from $143 million on September 20 to $1.15 billion on Thursday. Hyperliquid’s HYPE coin has fallen in the meantime. In the past day the token price has fallen 3.5% to $42.5 while open interest has decreased somewhat to $2.2 billion.
Final words
The increasing demand for regulated cryptocurrency investment products is verified by Bitwise’s application for a Hyperliquid ETF. This is a difficult moment for Hyperliquid yet as competitors like Aster continue to battle with it. While the ETF may increase HYPE’s reach and uptake its success will rely on regulatory clearance as well as Hyperliquid’s capacity to stay up with the rapidly evolving perpetual futures trading market.
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