21Shares Files S-1 to Debut HYPE ETF, Comeback Soon?

Core Viewpoint - 21Shares US LLC has filed for the "21Shares Hyperliquid ETF," aiming to track the price performance and staking yield of HYPE, the native token of the Hyperliquid network, as part of its expansion into DeFi-focused ETFs [1][2]. Group 1: ETF Structure and Management - The 21Shares Hyperliquid ETF is structured as a Delaware statutory trust, targeting institutional investors for exposure to HYPE's market performance and staking rewards, while minimizing management fees and liabilities [2]. - Coinbase Custody and BitGo Trust will act as custodians for secure cold storage of the fund's HYPE holdings [2]. - The ETF will not use leverage or derivatives, instead passively tracking HYPE's price through a benchmark aggregating data from major exchanges [3]. Group 2: Staking and Transaction Mechanism - 21Shares may stake a portion of the fund's HYPE through vetted staking providers or liquid staking tokens, contingent on regulatory clarity [3]. - The ETF's shares will be created and redeemed through authorized participants in exchange for HYPE or equivalent cash value [3]. - The inclusion of a "HYPE Counterparty" for transaction facilitation indicates a design akin to existing Bitcoin and Ethereum ETFs [4]. Group 3: Market Context and Future Prospects - If approved, the ETF would be the first US-listed leveraged ETF tracking a live DeFi protocol, utilizing derivatives instead of direct token holdings [5]. - Earlier in October, 21Shares also filed for a spot Injective (INJ) ETF, indicating a broader strategy in the DeFi space [5]. - HYPE is currently trading around $49.38, with technical indicators suggesting potential bullish momentum, which could position HYPE as a strong investment opportunity in 2025 [6][7].