- 21Shares files for a 2x leveraged HYPE ETF with the SEC.
- Filing highlights potential growth for institutional DeFi access.
- Could influence broader acceptance of niche digital asset ETFs.
21Shares has filed an application with the US SEC to introduce a 2x leveraged ETF based on Hyperliquid’s HYPE protocol, aiming for significant DeFi market engagement.
The filing signals a bold step towards institutional DeFi ETF growth, amid expert claims of HYPE’s current undervaluation and potential bullish market movements.
The latest development in DeFi markets sees 21Shares filing for the first-ever 2x leveraged ETF tracking Hyperliquid’s HYPE protocol with the SEC. This SEC filing aims to deliver double daily returns on the HYPE Index using derivatives. This move represents a significant shift in the domain of institutional DeFi ETF development. Industry experts suggest that HYPE might be more undervalued now than ever before.
21Shares, a leading presence in digital asset management, has initiated this filing with an estimated market span between $500 million and $1.5 billion. Traditionally recognized for launching mainstream crypto ETPs, 21Shares aims to expand institutional access with this strategic entry. Eric Balchunas, Bloomberg ETF Analyst, remarked on Twitter about the niche nature of this filing. He projects a promising trajectory similar to past market booms in niche-themed ETFs. The move has sparked varying reactions across financial markets.
The financial community is closely analyzing the potential outcomes of the SEC’s decision. Some experts predict a renewed interest in DeFi assets, projected from increasing mainstream capital flows into digital asset ETFs. This evolving pattern echoes early-market responses to BTC and ETH spot ETFs. Although the HYPE token tested short-term support, the broader implications for DeFi protocols remain optimistic as institutional interest grows.
The immediate economic effects of 21Shares’ filing will have broader market implications. Positive market sentiment might foster higher trading volumes and liquidity for HYPE and related DeFi tokens. As dominant blockchain frameworks like Ethereum facilitate these protocols, potential enhancements in DeFi governance and overall digital currency infrastructure are anticipated. Experts believe this filing could propel a broader acceptance and eventual normalization of niche digital asset ETFs. If approved, the effective date for the ETF is proposed for December 20, 2025, which the industry eagerly awaits.
