Core Insights - Swiss-based asset manager 21Shares has filed with the SEC to launch a Hyperliquid ETF, indicating a growing institutional interest in altcoin-linked investment products [1][9] - The proposed ETF will track the HYPE token associated with the Hyperliquid perpetual futures protocol and blockchain, with Coinbase Custody and BitGo Trust listed as custodians [3][4] - The filing comes amid increasing competition among asset managers, as Bitwise has also filed for a similar Hyperliquid ETF, highlighting the demand for decentralized trading ecosystem exposure [4][9] Market Trends - The HYPE token has seen a steady price increase this year, reflecting the rising trading volume and user base of the Hyperliquid protocol [5] - Recent launches of altcoin-based ETFs, such as Bitwise's Solana Staking ETF, which recorded $72 million in trading volume on its second day, demonstrate strong market interest [5][6] - Grayscale's entry with the Grayscale Solana Trust ETF also indicates a competitive landscape, with its first-day trading volume of $4 million being considered healthy [6] Regulatory Environment - The SEC's review of 21Shares' Hyperliquid ETF will be crucial in determining the addition of another altcoin-focused product to the growing list of US-listed crypto ETFs [7]