21Shares Files for Hyperliquid ETF as Altcoin Momentum Builds

Swiss-based crypto asset manager 21Shares has filed for U.S. SEC approval to launch a Hyperliquid ETF, marking another bold step in the growing wave of altcoin-linked investment products entering mainstream financial markets. The move reflects rising investor appetite for diversified crypto exposure beyond Bitcoin and Ethereum.

A New Kind of Crypto ETF

According to the filing, the proposed 21Shares Hyperliquid ETF would track the performance of Hyperliquid (HLP) — a decentralized derivatives platform built to offer on-chain perpetual trading for a wide range of digital assets.

The ETF aims to give traditional investors regulated access to Hyperliquid’s native token, which has seen significant traction among DeFi traders in recent months due to its high-speed infrastructure and liquidity model.

If approved, it would be among the first ETFs linked to a decentralized exchange (DEX) ecosystem, bridging the gap between DeFi innovation and traditional finance (TradFi).

Altcoin Interest on the Rise

The filing comes amid a broader altcoin resurgence as investors look beyond Bitcoin ETFs to new growth opportunities. Tokens linked to decentralized exchanges, layer-2 platforms, and AI-driven projects have all witnessed double-digit gains in the past quarter.

Analysts say that 21Shares’ timing aligns with increasing institutional curiosity about altcoins that power real-world utility — from DeFi derivatives to liquid staking and cross-chain interoperability.

“We’re witnessing a structural shift where institutional investors are exploring altcoin-based assets with tangible use cases,” said a digital asset strategist at a major investment firm. “21Shares’ Hyperliquid ETF could be the next big bridge between crypto innovation and traditional markets.”

21Shares’ Expanding ETF Lineup

21Shares, part of 21.co, has been a pioneer in crypto exchange-traded products (ETPs) across Europe. The firm already manages ETFs tied to Bitcoin, Ethereum, Solana, and Avalanche, and was one of the first issuers to launch spot Bitcoin ETFs in the U.S. in early 2024.

With the Hyperliquid ETF, the company aims to capitalize on DeFi’s growing legitimacy and provide compliant, transparent access to an asset class that has traditionally been confined to crypto-native investors.

SEC’s Stance Still Unclear

While the SEC has shown growing openness toward Bitcoin and Ethereum-based ETFs, its approach to altcoin-linked funds remains cautious. Regulators have previously flagged concerns about liquidity, volatility, and market manipulation in less established tokens.

However, 21Shares’ reputation for strict compliance and institutional-grade transparency could help strengthen its case. If approved, it would represent a significant regulatory milestone for DeFi assets entering the U.S. ETF market.

What’s Next

The SEC review process typically takes up to 240 days, during which public feedback and amendments may be made. Market observers say that even if approval takes time, the filing itself highlights a growing trend — traditional finance increasingly embracing altcoin innovation.With its Hyperliquid ETF filing, 21Shares is betting that the future of ETFs extends beyond Bitcoin and Ethereum — into the fast-evolving world of decentralized finance.