21Shares HYPE ETF Ignites New Altcoin Wave After Solana’s Success

 

21Shares HYPE ETF and Grayscale Updates Signal Altcoin ETFs Expansion

Institutional Momentum Grows as 21Shares Files for New HYPE ETF with the SEC

The race to bring more cryptocurrency exchange-traded funds (ETFs) to market is accelerating. On October 29, Swiss-based investment firm 21Shares announced the filing of its 21Shares HYPE ETF with the U.S. Securities and Exchange Commission (SEC), marking another major step toward the institutional adoption of decentralized finance (DeFi).

The proposed ETF aims to track the price performance of Hyperliquid (HYPE), the native token of a rapidly expanding decentralized exchange that specializes in perpetual futures trading. If approved, this would become the second HYPE-focused ETF after Bitwise’s submission earlier in September, highlighting rising institutional interest in this new generation of blockchain-based assets.

According to the filing, the fund will rely on Coinbase and BitGo as custodians to ensure asset safety and compliance with U.S. regulatory standards. The move underscores 21Shares’ growing role in bridging traditional finance and crypto markets through secure, regulated structures.

A Turning Point for Altcoin ETFs

The announcement from 21Shares comes at a crucial moment for the cryptocurrency investment landscape. The SEC is currently reviewing nearly 90 applications for crypto ETFs, including proposals tied to Solana (SOL), XRP, Cardano (ADA), and Dogecoin (DOGE). This surge in filings reflects a broader shift in investor appetite—from exposure limited to Bitcoin and Ethereum, to a more diversified basket of digital assets.

The 21Shares HYPE ETF stands out for offering exposure to DeFi innovation without requiring investors to directly hold or manage crypto tokens. Instead, the ETF will replicate the price movement of HYPE through financial derivatives such as swaps and options, providing a regulated and accessible way for investors to participate in DeFi’s growth story.

For institutions hesitant to navigate wallets, private keys, or smart contracts, this product offers a streamlined alternative. It could open the door for pension funds, asset managers, and family offices to enter the decentralized trading ecosystem for the first time.

The Rise of Hyperliquid and Its Expanding Ecosystem

At the center of this development is Hyperliquid, a decentralized exchange built on blockchain technology that has quickly emerged as a serious contender in the derivatives market. Unlike centralized exchanges, Hyperliquid operates without intermediaries, allowing users to trade perpetual futures directly from their wallets.

Since its launch, the platform has processed over $3 trillion in total trading volume, demonstrating deep liquidity and user confidence. It has attracted a growing base of professional traders due to its zero gas fee structure and advanced risk management tools.

Its native token, HYPE, has become one of the top-performing digital assets of 2025, currently ranking among the top 20 cryptocurrencies by market capitalization with a valuation of $12.7 billion. As of the latest market data, HYPE trades near $48.36, up approximately 1.84% over the past 24 hours.

Source: CMC

The proposed ETF would allow investors to capture this momentum indirectly, without exposure to the technical risks associated with DeFi platforms—an attractive prospect in an environment of increasing regulatory scrutiny.

Bitwise’s Solana ETF Sets a New Benchmark

While 21Shares pushes forward with its HYPE ETF, rival asset manager Bitwise has already made waves with its Solana ETF (ticker: BSOL). Launched earlier this month, the fund recorded $69.5 million in inflows on its first trading day, making it the most successful Solana-focused investment product to date.

BSOL directly holds and stakes Solana tokens, generating an annual yield of roughly 7% for investors. To drive early adoption, Bitwise waived its 0.20% management fee for the first three months—an aggressive strategy that has attracted both institutional and retail interest.

Kyle Samani, managing partner at Multicoin Capital, described Bitwise’s Solana ETF debut as “a watershed moment for institutional access to $SOL.” The move demonstrates growing confidence in altcoins beyond Bitcoin and Ethereum and sets a precedent for upcoming ETF issuers seeking to capture the expanding DeFi and Web3 markets.

Grayscale and Fidelity Strengthen the Altcoin ETF Trend

Adding to the momentum, industry giants Grayscale and Fidelity have entered the race with their own altcoin ETF initiatives. Grayscale recently secured SEC approval for its Grayscale Solana Trust (GSOL) to begin trading on the New York Stock Exchange, with a unique staking feature that allows investors to earn rewards while maintaining compliance with SEC rules.

Meanwhile, Fidelity Investments has filed an amendment to its Solana ETF (FSOL), signaling its continued push into the digital asset space. Both firms are leveraging their brand credibility and deep investor networks to bring legitimacy to the altcoin ETF segment.

These developments, when combined with the 21Shares HYPE ETF filing, mark a pivotal shift toward mainstream acceptance of alternative crypto assets within regulated markets.

Policy Changes Accelerate ETF Growth

The regulatory landscape in the United States has also evolved, enabling faster approval timelines for crypto ETFs. The SEC’s review period has been shortened from 240 days to just 75 days, allowing issuers to bring new products to market more efficiently.

The Trump administration’s renewed pro-crypto stance has further accelerated institutional participation. Recent statements from U.S. Treasury officials have indicated a willingness to support “responsible innovation” in digital assets, which has created a more favorable climate for firms like 21Shares, Bitwise, Grayscale, and Fidelity.

As a result, the once-narrow market for crypto ETFs is rapidly expanding beyond Bitcoin and Ethereum, paving the way for an altcoin ETF ecosystem that mirrors the diversity of the broader crypto economy.

A Bridge Between DeFi and Wall Street

The introduction of ETFs tied to decentralized finance assets represents more than just a financial product—it signifies a bridge between two worlds: blockchain innovation and traditional capital markets.

ETFs like the 21Shares HYPE ETF could fundamentally change how institutional investors engage with crypto assets. Instead of navigating complex DeFi protocols or unregulated exchanges, investors can gain exposure to blockchain-based platforms through familiar financial instruments that are SEC-compliant and transparently priced.

For regulators, such funds provide a controlled pathway for capital inflows, reducing the systemic risks often associated with unregulated DeFi trading. For investors, they deliver liquidity, security, and exposure to one of the fastest-growing sectors of the crypto economy.

The Bigger Picture

The convergence of filings from 21Shares, Bitwise, Grayscale, and Fidelity underscores a clear trend: major players are betting on a future where altcoin ETFs are as common as traditional equity or bond funds.

If approved, these ETFs could collectively unlock billions of dollars in institutional investment, fueling innovation and liquidity across multiple blockchain ecosystems. Analysts predict that by 2026, the combined market capitalization of altcoin-based ETFs could surpass $25 billion, signaling a new phase of maturity for digital assets.

The momentum suggests that the days of Bitcoin and Ethereum’s dominance may give way to a multi-chain investment era, where a diversified range of tokens drives both retail and institutional participation.

Conclusion

The filing of the 21Shares HYPE ETF, coupled with the growing wave of altcoin-focused funds from Bitwise, Grayscale, and Fidelity, marks the beginning of a new chapter in crypto finance.

As regulations evolve and institutions seek compliant pathways to access digital assets, the rise of altcoin ETFs represents a powerful convergence of innovation, accessibility, and legitimacy. What was once a niche corner of the crypto market is now shaping the future of global finance.

Whether HYPE, Solana, or the next emerging token leads the charge, one thing is certain: the boundaries between DeFi and Wall Street are rapidly disappearing—and the investment landscape will never look the same again.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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