Hyperliquid ETF Debut Signals Next Phase of Crypto Investing
21Shares’ newly launched THYP fund has become the first U.S.-listed ETF tied directly to a decentralized finance protocol, marking a major milestone in the evolution of crypto investment products beyond traditional Layer-1 blockchains.
Summary:
- THYP becomes the first ETF linked to a DeFi protocol.
- The fund attracted $1.2 million in day-one inflows.
- Rival issuers Bitwise and Grayscale prepare competing HYPE ETFs.
The ETF, which tracks the Hyperliquid ecosystem and its native HYPE token, began trading on Nasdaq on May 12 and generated roughly $1.8 million in first-day trading volume alongside $1.2 million in net inflows, according to disclosures from the issuer.
DeFi Enters the ETF Market
The launch signals a new phase for crypto exchange-traded products, which until recently focused primarily on large-cap assets such as Bitcoin and Ethereum. THYP instead offers exposure to a decentralized perpetual trading ecosystem, reflecting growing investor interest in blockchain-based financial infrastructure rather than standalone digital currencies.
The fund carries a 0.30% management fee, undercutting several competing proposals currently awaiting approval. Analysts say the pricing strategy could help 21Shares establish an early lead in what may become a competitive market for DeFi-focused ETFs.
Alongside THYP, the company also launched the leveraged TXXH ETF, which seeks to deliver twice the daily performance of the HYPE token. The dual launch mirrors the growing sophistication of crypto-linked investment products as issuers expand beyond simple spot exposure.
The ETF also includes staking participation, allowing shareholders to benefit indirectly from rewards generated through the underlying blockchain network. That structure represents another shift in how traditional financial products incorporate native blockchain mechanics into regulated investment vehicles.
Competition Builds Around Hyperliquid
The successful launch has intensified competition among major crypto asset managers seeking exposure to the rapidly growing Hyperliquid ecosystem.
Bloomberg ETF analyst James Seyffart said Bitwise is likely next in line to launch a competing HYPE-linked product following recent regulatory amendments. Bitwise recently updated its filing to include staking participation that could distribute a large portion of rewards directly to shareholders.
Okay, $THYP finished the day at $1.8 million in trading. Very very solid day and better than your average ETF launch for sure but nothing too crazy. Expecting @Bitwise's Hyperliquid ETF to be the next launch.
Hyperliquid https://t.co/4RWzMBJT2D pic.twitter.com/fg3Nm5cV15
— James Seyffart (@JSeyff) May 12, 2026
Meanwhile, Grayscale Investments has also amended filings tied to a competing HYPE investment product.
Industry analysts expect the growing interest to fuel a broader race among issuers to launch funds tied to decentralized finance protocols, particularly as regulators become more comfortable with crypto ETF structures following the adoption of streamlined listing standards in late 2025.
The SEC’s revised framework has significantly accelerated crypto ETF approvals by moving away from highly individualized review processes toward standardized requirements for eligible digital asset products.
Hyperliquid Expands Institutional Presence
The ETF launch arrives during a period of rapid expansion for Hyperliquid itself. The decentralized exchange has emerged as one of the dominant venues for perpetual futures trading, with annualized revenue reportedly exceeding $800 million.
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At the same time, the platform has expanded beyond trading into broader blockchain infrastructure through the launch of HyperEVM, which introduced Ethereum Virtual Machine compatibility to the network earlier this week.
Institutional firms including FalconX and Ripple Prime have also integrated Hyperliquid into their liquidity and trading operations, adding to growing institutional credibility around the protocol.
Despite the ETF milestone, HYPE traded slightly lower following the launch, declining around 3.5% to near $40 as broader crypto markets weakened after Bitcoin failed to maintain momentum above the $83,000 level earlier in the week.
Crypto ETFs Move Beyond Layer-1 Tokens
The debut of THYP highlights how crypto ETFs are beginning to evolve beyond passive exposure to the largest digital assets and toward specialized blockchain ecosystems tied to decentralized applications and financial services.
Rather than simply tracking token prices, newer products increasingly package staking rewards, protocol revenue exposure and decentralized infrastructure growth into traditional investment wrappers.
For the ETF industry, the launch represents an early test of institutional appetite for DeFi-focused products. While THYP’s first-day activity remained below the blockbuster debuts seen by earlier Solana and XRP ETFs, analysts say the fund’s performance still marks a meaningful step toward integrating decentralized finance into mainstream capital markets.
As crypto investment products continue diversifying, DeFi protocols themselves are increasingly becoming investable asset classes within traditional financial systems.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
