21Shares Submits 2x HYPE DeFi ETF to SEC
- 21Shares submits leveraged HYPE ETF to SEC, signaling institutional interest.
- ETF aims at tracking Hyperliquid with 2x daily exposure.
- Potential impact on DeFi markets if ETF gains significant traction.
21Shares has applied to the US SEC for the first leveraged DeFi ETF, offering 2x daily exposure to Hyperliquid’s price, filed on October 16, 2025.
This filing aims to enhance institutional interest in DeFi markets, potentially boosting Hyperliquid’s derivative trading, with possible impacts on broader market liquidity and DeFi product adoption.
21Shares has submitted a filing to the US SEC for a leveraged DeFi ETF focusing on Hyperliquid. This application seeks approval for a financial product that could double exposure to HYPE’s market through derivatives.
The filing targets institutional investors seeking synthetic exposure to DeFi through Hyperliquid derivatives. 21Shares, an asset manager with significant experience, hopes to expand its ETF offerings in the US.
The ETF could affect DeFi market liquidity, particularly the sectors tied to Hyperliquid. Elevated activity in swap and derivatives markets could result in broader market implications.
Currently, the ETF’s market capacity is estimated between $500 million and $1.5 billion. Without direct token custody, this innovative approach uses financial instruments to provide exposure, potentially impacting related DeFi sectors.
As the first of its kind in the US, the ETF highlights a growing interest in decentralized financial products. Its success could set a precedent, leading to more US-based leveraged DeFi products.
Investment analyst Eric Balchunas termed this filing as niche but acknowledged potential growth, drawing parallels to past financial product trends. It represents a wider institutional embrace of DeFi innovations.
“This is the kind of filing where you’re like man, that is SO niche, idk.. but then you could look up in 3-4yrs it’s got a few billion. Just a total land rush right now, just like with themes, curr[ency] hedging and smart beta in eras past.” – Eric Balchunas, ETF Analyst, Bloomberg
