On Thursday, 21Shares filed for a 2X HYPE ETF application with the US Securities and Exchange Commission (SEC). The proposed product is designed to double investors’ daily exposure to the Hyperliquid Index, a decentralized platform.
21Shares HYPE ETF Filing
According to the 21Shares 2X Long HYPE ETF filing, the fund seeks to deliver 200% of daily returns on the Hyperliquid Index by using leveraged derivatives instead of direct custody tokens. It will provide twice the daily price movements of HYPE on a single-day basis, meaning the fund will reset daily to maintain the 2X leverage on the underlying asset’s price.
The 2X daily price performance of HYPE can be leveraged through using swaps, futures, options on HYPE itself, or HYPE ETPs. Investors are warned in the filing that holding the ETF for longer than a day can lead to divergence from the expected returns, especially in volatile markets.
The firm already manages more than $11 billion in assets globally and continues to diversify its product offerings with Swiss and European Exchanges. If approved, 21Shares will become the first US-listed leveraged ETF to track a live DeFi (decentralized finance) protocol’s fee and perpetual market performances. The effective date for the proposed crypto ETF is December 20, 2025, and the ticker for the fund is yet to be announced.
Risks Involved
While double daily returns may attract users, there are several risks that should be considered before investing. The filing stated that there could be fluctuations in investments due to any reason, like investors’ financial stability, economic or political events, and lack of market liquidity can negatively impact buying or selling prices.
There are broader risks associated as well that can disrupt supply chains. Because of these risks, the fund is designed as a short-term trading vehicle and is not suitable for investors who do not actively manage their holdings.
What Are the Experts Saying
Bloomberg crypto analyst Eric Balchunas called this 2x leveraged HYPE ETF a niche, but clarified that this kind of product could grow surprisingly large, potentially reaching billions in assets under management.
He said, “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, currency hedging, and smart beta in eras past.”
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