Growing investor demand for altcoin ETFs signals expanding institutional interest beyond Bitcoin and Ethereum
21Shares, one of the world’s largest crypto asset managers, has filed to launch a new exchange-traded fund (ETF) tracking the Hyperliquid (HYPE) token, signaling rising institutional appetite for decentralized finance and next-generation blockchain assets.
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Wednesday, the proposed 21Shares Hyperliquid ETF will track the price of the HYPE token — the native asset of the Hyperliquid blockchain, which powers its decentralized perpetual futures exchange. Coinbase Custody and BitGo Trust have been named as custodians for the product, ensuring regulatory compliance and secure storage.
The ETF proposal comes just weeks after Bitwise Asset Management filed for a similar Hyperliquid ETF, underscoring a growing trend among issuers racing to bring altcoin-linked funds to market.
Bitwise Solana Staking ETF Posts $72 Million Volume on Day Two
Meanwhile, Bitwise’s Solana Staking ETF (BSOL) continued to attract strong inflows, recording over $72 million in trading volume on its second day of trading — a figure Bloomberg ETF expert Eric Balchunas described as “a huge number” and a “good sign” of sustained investor enthusiasm.
Most ETFs see a sharp decline in activity after their first-day hype, making BSOL’s day-two performance unusually strong. The fund, which launched alongside Canary Capital’s Litecoin and Hedera ETFs, had already logged $55.4 million in day-one trading volume, the highest of all crypto ETFs launched this year.
Balchunas also noted that Grayscale’s competing Solana ETF (GSOL) saw $4 million in debut-day trading, calling it “healthy but obviously short of BSOL.”
“Being just one day behind Bitwise makes it much tougher for Grayscale to catch up,” Balchunas added.
The surge in altcoin ETF filings — from Solana to Hyperliquid — marks a pivotal shift as traditional investors increasingly diversify into decentralized assets beyond Bitcoin and Ethereum.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.