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- THYP recorded $1.2 million in inflows and $1.8 million in debut trading volume.
- The ETF tracks Hyperliquid’s HYPE token as altcoin ETFs continue expanding in the US.
- Lower fees and easier SEC approvals are intensifying competition among crypto ETF issuers.
The race to bring more crypto investment products to Wall Street is accelerating, and the latest entrant is already drawing attention. Asset manager 21Shares launched its first US-based Hyperliquid exchange-traded fund this week, marking another step in the expansion of altcoin-focused ETFs.
The new fund, trading under the ticker THYP on Nasdaq, recorded roughly $1.2 million in net inflows and $1.8 million in trading volume during its debut session. While those figures fall short of some of the year’s biggest crypto ETF launches, analysts still described the opening day as respectable for a niche altcoin product.
Bloomberg ETF analyst James Seyffart noted that the launch performed better than many typical ETF debuts, though it did not reach the explosive demand seen in earlier crypto-related funds.
THYP Targets Hyperliquid’s Growing Ecosystem
THYP is designed to follow the spot price of Hyperliquid’s HYPE token, which powers the Hyperliquid perpetual futures trading platform. Since its 2023 launch, the platform has processed more than $8.4 trillion in cumulative trading volume, helping it emerge as one of the fastest-growing decentralized trading ecosystems.
The ETF arrives as investor appetite for alternative crypto exposure continues to broaden beyond Bitcoin and Ethereum. Products linked to Solana, XRP, and now Hyperliquid are increasingly being packaged into regulated investment vehicles for traditional investors.
Still, THYP’s first-day activity was modest compared to other recent crypto ETF launches. The Bitwise Solana staking ETF reportedly attracted tens of millions in opening-day volume, while a separate XRP-focused ETF also posted significantly stronger early trading numbers.
SEC’s Softer Stance Opens the Door
The launch also reflects changing regulatory conditions in the United States. In recent months, the U.S. Securities and Exchange Commission shifted toward broader listing standards for spot crypto ETFs, reducing the need for lengthy case-by-case reviews.
That regulatory change has encouraged firms to push more altcoin ETF products into the market. Bitwise is still awaiting approval for its own Hyperliquid staking ETF, while Grayscale is also seeking approval for a competing HYPE-based fund.
Another competitive factor is pricing. THYP carries a management fee of 0.3%, noticeably below the proposed fee attached to Bitwise’s planned Hyperliquid ETF.
Crypto ETF Boom Faces Long-Term Questions
Despite growing momentum, some analysts remain cautious about the long-term survival of many crypto ETFs. Seyffart previously warned that a large number of crypto exchange-traded products could eventually close due to weak investor demand.
Also Read: Hyperliquid ETF Goes Live as Phantom Earns $20M From Integration
That concern comes as the broader ETF market experiences shorter product lifespans. Industry data this year has shown a growing number of ETF liquidations, even though major crypto-related funds have so far avoided that trend.
For now, however, the launch of THYP signals that Wall Street’s appetite for crypto diversification continues to expand, especially as regulators become more open to digital asset investment products.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
