Blockchain platforms are flooding the market, filing for crypto ETFs. Since ETFs got approval in October 2021 in the US, several companies have eyed on importance of holding a crypto ETF. Amid the growing craze for crypto ETFs, asset manager Bitwise has filed to launch a spot Exchange-Traded Fund (ETF) tied to Hyperliquid, a blockchain platform and perpetual futures protocol.
Bitwise Hyperliquid ETF
The company is seeking to launch a new ETF called the Bitwise Hyperliquid ETF, which would directly hold Hyperliquid (HYPE). Bitwise opted for Hyperliquid amid the heating competition among decentralized exchanges that focus on perpetual futures trading. Hyperliquid is one of the leading blockchains in on-chain perpetual futures trading, and how this token performs matters a lot to the Bitwise Hyperliquid ETF. Â
SEC’s friendly rules for crypto ETFs
Although the first US crypto ETF was approved in ETF, regulations were not very easy to navigate. Recently, the US Securities and Exchange Commission (SEC) updated its standards for ETFs, which sparked several asset managers to introduce crypto ETFs. The SEC’s generic listing standards now allow certain ETFs to be listed without requiring individualized rule filings. These updates also enable crypto ETF listings to go through a shorter review period.
With Bitwise filing for Hyperliquid ETF, the token is gaining momentum in the crypto market. However, its rival ASTER is performing well, with trading volume surging to $35.8 billion. At the time of reporting, Hyperliquid was trading at $42.3.
Why companies are rushing to file for crypto ETFs
The answer is quite simple, as most of us know: huge demand! Since the crypto ETF approval in 2021 and the SEC’s recent upgrade of ETF regulations, investor appetite has grown, and companies have awakened to start ETFs. When companies file for ETFs, their position in the market gets spotlighted, attracting more investors to buy them. Besides the existing Bitcoin and Ethereum ETFs, asset managers are now exploring the possibility of launching ETFs tied to other cryptocurrencies such as HYPE, DOGE, XRP, Solana, and more.
