Asset management firm 21Shares has officially submitted a filing to launch a new exchange-traded fund (ETF) focused on the Hyperliquid protocol, signaling a growing institutional interest in alternative and emerging cryptocurrencies. The proposed fund, dubbed the 21Shares Hyperliquid ETF, was filed with the U.S. Securities and Exchange Commission (SEC) this week. While the submission has yet to reveal a ticker symbol or specify fees, it does list Coinbase Custody and BitGo Trust as custodians for the fund’s digital assets.
The move by 21Shares comes shortly after Bitwise Asset Management made a similar filing for a Hyperliquid ETF under the ticker HYPE. The Hyperliquid token functions as a utility asset within its decentralized exchange ecosystem, providing users with fee discounts and payment capabilities on the protocol’s blockchain. Over the past year, the token has seen a notable increase in value, largely attributed to the growing adoption and visibility of the Hyperliquid platform.
This surge in institutional attention toward altcoin-linked ETFs reflects a broader trend in the crypto investment landscape. Investors are increasingly exploring beyond Bitcoin and Ethereum, directing capital toward more volatile, innovative, and staking-enabled assets. The recent performance of Bitwise’s Solana-based ETF is a strong indicator of this shift.
Launched earlier this week, the Bitwise Solana Staking ETF (BSOL) made a significant splash in its first two trading sessions. On its second day alone, the fund recorded over $72 million in trading volume—a figure described as “a huge number” by Bloomberg ETF analyst Eric Balchunas. He emphasized that such sustained activity beyond the inaugural trading day is rare, making BSOL’s performance a positive sign for the longevity and appeal of crypto-related ETFs.
BSOL began trading on Tuesday alongside other new crypto ETFs, including offerings from Canary Capital based on Litecoin (LTC) and Hedera (HBAR). Notably, BSOL led the pack with an impressive $55.4 million in volume on its first day, making it the most actively traded of any crypto ETF launched in 2025 so far.
In a competitive move, Grayscale Investments launched its own Solana-focused fund—Grayscale Solana Trust ETF (GSOL)—on Wednesday. While GSOL recorded a respectable $4 million in trading volume at launch, it fell significantly short of BSOL’s figures. Balchunas noted that even a single day’s delay in launching a fund can drastically affect its market momentum and investor attention. “Being just one day behind is actually really huge,” he commented, pointing to the challenges of catching up in a fast-moving ETF market.
The growing interest in ETFs linked to staking protocols like Solana indicates a maturing investor appetite for yield-generating digital assets. Staking offers a way to earn passive income by participating in the network’s consensus mechanism, a feature that traditional investment products are now beginning to incorporate.
The success of these products also highlights a shift in investor behavior. Rather than focusing solely on price appreciation, more sophisticated crypto investors are now looking at network participation, governance rights, and on-chain utility when evaluating digital assets. ETFs that reflect these characteristics are likely to gain more traction in the months ahead.
As the regulatory landscape for crypto continues to evolve, asset managers are racing to create compliant and innovative investment vehicles. The SEC’s eventual stance on the 21Shares Hyperliquid ETF and its counterparts will serve as a litmus test for future altcoin-related products.
Furthermore, the demand for crypto ETFs is not limited to retail investors. Institutions, family offices, and hedge funds are increasingly exploring exposure to digital asset markets through regulated, transparent instruments. ETFs offer a familiar structure with built-in liquidity and custody solutions, making them an attractive gateway into crypto.
In the coming months, the focus may shift toward ETF products covering other emerging protocols such as Avalanche, Arbitrum, or Cosmos. These ecosystems, which also offer staking and high-throughput capabilities, are candidates for future ETF tracking, especially if investor enthusiasm for yield and utility remains strong.
Additionally, the development of derivative-based ETFs—such as those incorporating options or futures on altcoins—could further deepen the market. If demand continues to rise, we may see more complex financial instruments built around the DeFi and staking niches.
For now, the spotlight remains on Solana and Hyperliquid. With 21Shares joining Bitwise in the race to launch a Hyperliquid ETF, the competition among asset managers to capitalize on altcoin trends is clearly intensifying. As more investors look beyond the top two cryptocurrencies, altcoin ETFs may soon become a core part of diversified crypto portfolios.