HYPE Price Drops Despite Bitwise Filing First Spot Hyperliquid ETF

Highlights:

• Bitwise wants to launch a spot ETF for the HYPE token soon.
• The ETF will hold HYPE and let investors trade shares for tokens.
• SEC approval may take months, but it could attract more investors.

On September 25, Bitwise Asset Management submitted Form S-1 with US regulators to launch a spot exchange-traded fund (ETF) for Hyperliquid’s blockchain-based token, HYPE. The filing states that the HYPE ETF will directly hold the token and “seek to provide exposure to the value of Hyperliquid held by the Trust,” similar to the popular Bitcoin and Ether ETFs launched last year.

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Coinbase Custody Trust Company will act as the custodian. The Hyperliquid ETF will also support in-kind creation and redemption, letting investors exchange fund shares for HYPE tokens instead of cash. The SEC approved in-kind creation in July, saying it is easier, faster, and cheaper for everyone.

NEW: @BitwiseInvest files for Hyperliquid ETF. HYPE pic.twitter.com/l3WaXRmo8Z

— James Seyffart (@JSeyff) September 25, 2025

Bitwise ETF Plans and Regulatory Steps

Bitwise has not yet disclosed the exchange where the ETF will be listed or the ticker symbol it will trade under. The company has also not shared the management fees investors are expected to pay. Bitwise filed a Form S-1 to register its ETF with the SEC under the Securities Act of 1933, also called the “’33 Act,” which lets the fund hold the crypto token directly. The ETF will also need to submit Form 19b-4 to start the SEC approval process, which could take up to 240 days.

Earlier this month, the SEC approved new generic listing rules for crypto ETFs. These rules let some products skip full individual reviews and get faster approvals if the underlying asset has traded for six months on a CFTC-regulated exchange. However, Bitwise said in its filing that “there are currently no Hyperliquid futures contracts registered with the CFTC.”

BOOM: SEC has approved the generic listings standards that will clear way for spot crypto ETFs to launch (without going through all this bs every time) under '33 Act so long as they have futures on Coinbase, which currently incl about 12-15 coins. pic.twitter.com/E9FXrniXRS

— Eric Balchunas (@EricBalchunas) September 17, 2025

ETF filings usually boost an asset’s price by creating new demand and attracting institutional attention. However, HYPE has shown little change, moving sideways between $40.11 and $43.46. At the time of writing, Hyperliquid was down nearly 2% over the past 24 hours at $42.50, after recovering some losses. Over the past week, its decline has extended to more than 25%.

Bitwise Expands Crypto ETF Lineup

Bitwise has been expanding its crypto-focused ETFs. Its first spot Bitcoin ETF, BITB, was approved by the SEC in January last year, along with 11 other funds from different issuers. According to Bitwise’s website, BITB, held by Bank of New York Mellon, has 74,070,000 shares and about $4.417 billion in assets. In July, Bitwise tried to convert its flagship BITW crypto index fund into an ETF. It initially received SEC approval but was later put on hold, delaying the launch.

Bitwise has also been pursuing single-asset funds for altcoins. It filed for a spot XRP trust with the SEC in October last year, followed by filings for Aptos and NEAR products. So far, the Commission has used its authority to extend these reviews. Deadlines for Bitwise’s altcoin ETF proposals are now set for late 2025.

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