HYPE Price Remains Flat Despite Bitwise Filing for Hyperliquid ETF
Despite Bitwise filing for the first spot exchange-traded fund that holds and tracks Hyperliquid’s token, the price of HYPE has remained flat and failed to reverse its multi-week downtrend.
Summary
- HYPE price remains in a multi-week downtrend even as Bitwise filed for a Hyperliquid ETF.
- Bitwise’s HYPE ETF does not qualify for accelerated approval under the SEC’s new generic listing standards.
On September 25, Bitwise submitted a Form S-1 to the U.S. Securities and Exchange Commission under the Securities Act of 1933, outlining plans for the Bitwise Hyperliquid ETF.
The fund will directly hold the Hyperliquid (HYPE) token, offering Wall Street investors direct exposure to the token’s market value without the need to self-custody or interact with the underlying blockchain infrastructure.
The ETF will allow for in-kind creations and redemptions, enabling shares of the fund to be exchanged for HYPE tokens instead of cash, reducing friction and operational costs.
Bitwise will need to submit Form 19b-4 to initiate the SEC’s review process for listing the ETF on a national securities exchange.
Bitwise has not disclosed the exchange, ticker, or management fees for the ETF. The SEC review period could extend up to 240 days after acknowledgment of the filing.
Despite the potential benefits of ETF filings for price performance, HYPE has seen little movement and remains in a tight range between $40.11 – $43.46.
Hyperliquid has been on a downtrend due to profit-taking, competition from rival protocols, and concerns around an upcoming token unlock, despite the Bitwise ETF filing.
At press time, Hyperliquid (HYPE) is down almost 1% in the past 24 hours at $42.41, with weekly losses exceeding 25%.