21Shares Files for First 2x Leveraged HYPE ETF in the U.S., Targeting Double Exposure to DeFi Ind...

21Shares files with the SEC to launch the first 2x leveraged HYPE ETF tied to a live DeFi protocol.

The ETF aims to double Hyperliquid Index returns using swaps, with potential capacity up to $1.5B.

Rival firms Bitwise and VanEck also pursue Hyperliquid ETFs as DeFi gains institutional traction.

21Shares has filed with the U.S. Securities and Exchange Commission to launch a 2x leveraged HYPE ETF. The proposed product would amplify investor exposure by 200% to Hyperliquid’s index performance. If approved, it would be the first U.S.-listed leveraged ETF tracking a live decentralized finance protocol.

21Shares Moves to Launch 2x Leveraged HYPE ETF

The Swiss-based asset manager 21Shares submitted a filing with the U.S. SEC for a 2x leveraged HYPE ETF. The proposed fund aims to offer double the daily returns of the Hyperliquid Index using swap agreements instead of direct token custody. This structure adds layers of funding and counterparty exposure.

Bloomberg ETF analyst Eric Balchunas described the filing as “so niche it might just win,” comparing it to early thematic ETF trends. If approved, the product would mark the first leveraged ETF linked to a live DeFi protocol’s performance in the U.S. market.

Analysts estimate the ETF’s capacity could range from $500 million to $1.5 billion, depending on available liquidity in Hyperliquid’s markets. The filing follows 21Shares’ recent DOGE ETF listing on the DTCC platform and the HYPE ETP launch on the SIX Swiss Exchange in Europe.

Competing Asset Managers Pursue Hyperliquid-Based ETF Products

The 21Shares filing adds to growing interest among asset managers seeking exposure to Hyperliquid’s ecosystem. Bitwise recently filed for a spot HYPE ETF designed to hold the native token directly, with in-kind creation and redemption features allowing share swaps for tokens instead of cash.

VanEck also applied for a spot staking Hyperliquid ETF in the U.S. and a parallel European ETP. The company has suggested plans to integrate staking yields and potential HYPE buybacks into fund operations.

The surge in filings follows Hyperliquid’s HIP-3 upgrade, which introduced permissionless perpetual market creation. Experts note this update could enhance liquidity and broaden institutional interest, positioning Hyperliquid as an emerging DeFi platform attracting major Wall Street asset managers.

The post 21Shares Files for First 2x Leveraged HYPE ETF in the U.S., Targeting Double Exposure to DeFi Index Returns appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.