Cryptocurrency exchange-traded funds continue to record steady demand despite bearish digital asset prices.
Asset manager Bitwise, which has seen impressive success in its Solana ETF, has taken another step toward debuting its highly-awaited Hyperliquid exchange-traded fund.
According to Bloomberg’s senior analyst Eric Balchunas, Bitwise has filed an amendment for its HYPE ETF, adding multiple final pieces that he trusts indicate an imminent launch.
It has added $BHYP as the fund’s ticker and a 67 basis points management fee.
Most importantly, the new application includes an 8-A registration, which often indicates a security preparing to start trading on leading exchanges.
Bitwise just filed amendment for its Hyperliquid ETF which added the 8a thing, the fee (67bps) and the ticker $BHYP. Usually that means launch imminent. Stay tuned.
Why the ‘high’ 67 bps fee?
The 0.67% fee makes Bitwise’s $BHYP expensive than ultra-low-cost BTC ETFs.
For context, the Bitwise Bitcoin ETF (BITB) boasts a 0.20% fee.
Meanwhile, the pricing likely reflects the nature of the $BHYP exposure.
While most ETFs track a single large-cap cryptocurrency token, the HYPE exchange-traded fund will capture value across the thriving Hyperliquid decentralized exchange.
Moreover, managing liquidity, custody, and compliance in risk exposures such as the perpetual DEX sector requires more operational fees.
Hypeliquid’s rapid growth
Hyperliquid is among the platforms that shaped the latest cycle, where perpetual decentralized exchanges witnessed robust traction.
The DEX gained attention rapidly due to its focus on high-frequency, on-chain derivatives trading.
Hyperliquid supports deep liquidity and fast execution without third-party or centralized intermediaries.
With that, it has grabbed the attention of notable figures in the industry.
For example, BitMEX co-founder Arthur Hayes believes Hyperliquid will outshine Binance in the coming years.
Meanwhile, an ETF linked to Hyperliquid signals institutional confidence in the DEX’s future performance.
Also, the move signals the current trend of altcoin ETFs, which started in late October with the debut of Solana, Hedera, and Litecoin exchange-traded funds.
What’s next?
Despite the impressive launch indicators, $BHPY needs more steps before it starts trading.
Enthusiasts will watch final regulator confirmations, exchange listing announcements, and ultimately the debut day.
Notably, market players will closely monitor early inflows, with an impressive initial demand validating Bitwise’s narrative that clients want more crypto exposure through ETFs.
21Shares also filed for a HYPE exchange-traded fund in October.
HYPE price outlook
Hyperliquid’s native token mirrors broader market performance.
HYPE has lost more than 2% in the past 24 hours to $28.75.
Continued downsides could dip HYPE to the support at $27, beneath which sellers will drag it to $24.
On the other hand, overcoming the resistance at $30 can catalyse notable gains to the demand zone between $33 – $35.
A breakout here might trigger significant rallies for HYPE in the near term.
Institutional interest (through ETFs) positions Hyperliquid as among the most lucrative projects of the next bull cycle.
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