Hyperliquid ETF Launch Nears as Bitwise Amends S-1

Bitwise has made an important move towards introducing the first spot ETF of Hyperliquid in America. The update added the fee of the fund, the ticker as well as the final language of registration. These developments normally indicates that approval is near at hand.

Is Hyperliquid the Next Spot ETF? 

The asset manager has filed a modified Form S-1 with the Securities and Exchange Commission. Based on the trends before previous crypto ETF launches, such late edits often come right before an official launch of a product.

Already, market watchers are evaluating the impact that the filing can have on the price of HYPE token. Experts are forecasting an uptrend in HYPE price in case the ETF is approved. Under the proposed Bitwise Hyperliquid ETF, investors would have regulated exposure to HYPE tokens.

Before the registration becomes valid, the fund will be listed on the NYSE Arca. The ETF will hold Hyperliquid tokens physically, according to the filing.

Its net asset value will track a pricing benchmark provided by CF Benchmarks. That benchmark aggregates trading data from major Hyperliquid markets.

Bloomberg ETF analyst Eric Balchunas said such filings often mean issuance is imminent. The amendment lists a management fee of 0.67% and the ticker symbol BHYP.

Is the Bitwise Hyperliquid ETF Ready to Launch?

Bitwise also plans to stake a portion of the fund’s holdings. The firm expects that the staking reward feature will boost the HYPE token holdings of the ETF with time.

This is a structure that is now common in more recent crypto ETFs. The Hyperliquid ecosystem has also recorded new activity with Sonnet obtaining approval from its shareholders to launch a HYPE treasury firm.

Anchorage Digital Bank will be the custodian of the ETF. Anchorage will provide protection for the tokens and will oversee the staking operations. According to the filing, the assets will be held in segregated accounts.

The updated S-1 also has seed funding information. The Bitwise ETF has already received the required start-up funds from one of its affiliates. This normally takes place near the time of the actual launching of a product. BHYP would be available for trading within few days or weeks provided it is approved.

ETF Momentum Hasn’t helped HYPE Price 

Since the announcement of the amended filing, the reaction of the HYPE token has been subdued. On TradingView, HYPE was trading at around $28.80, and was down by approximately 0.12% in the last day.

The token briefly touched $29.12 earlier in the session before pulling back. HYPE is also down more than 3% over the past week and over 23% in the past month.

Meanwhile, onchain activity has created attention after the recent case of the Hyperliquid team shifting $90 million HYPE as it is ranked among the blockchains earning the highest fees.

Spot crypto ETFs have expanded rapidly since Bitcoin and Ethereum approvals. Issuers are now racing to bring single-asset products tied to newer networks.