Bitwise Bids for Spot Hyperliquid ETF Amid DEX Wars

Bitwise has filed to launch an exchange-traded fund (ETF) that will track the token linked to the crypto perpetual futures protocol, Hyperliquid. The proposed Bitwise Hyperliquid ETF aims to directly hold Hyperliquid's token (HYPE), which provides trading discounts and is used for fee payments on its decentralized exchange. This filing arrives amidst intensified competition among decentralized exchanges (DEXs), particularly following Aster's recent token launch, which has dramatically increased trading volumes. Unlike traditional ETFs, Bitwise's offering will feature in-kind creation and redemptions, allowing exchanges of shares for HYPE tokens. The filing with the SEC includes necessary forms to begin the approval process, although no Hyperliquid futures contracts are currently registered with the CFTC. Aster has seen its trading volume surge to $70 billion, significantly outpacing Hyperliquid's $10 billion, showcasing the competitive landscape for DEXs in the crypto space.

Source 🔗