Asset manager 21Shares has filed an application with the US Securities and Exchange Commission (SEC) for a 2x leveraged HYPE ETF, aiming to provide institutional investors with exposure to the DeFi space. The proposed fund seeks to achieve double the daily returns of Hyperliquid, a DeFi token, and would be the first US-listed leveraged ETF to replicate the fees and sustained market performance of a live DeFi protocol.
Introduction to the 21Shares 2x Long HYPE ETF
The 21Shares 2x Long HYPE ETF aims to replicate twice the daily performance of HYPE before fees and expenses. The fund will invest in a combination of swap agreements, options, and possibly Spot HYPE Exchange-Traded Products (ETPs). Notably, no US-based Spot HYPE ETPs are currently available for investment. The use of swap derivatives allows the ETF to achieve leveraged exposure to HYPE without the need for token custody, providing a unique structure for investors to benefit from the growth of the DeFi ecosystem.
Market Interest and Competition
Other top asset managers, including Bitwise, have submitted similar proposals for spot HYPE ETFs, reflecting growing institutional interest in exploring DeFi assets via regulated investment vehicles. This surge in interest highlights the increasing demand for exposure to the DeFi space, with asset managers seeking to provide investors with a range of options to tap into this growing market.
HYPE Token Price Movement
Despite the latest developments, the HYPE token is currently under pressure, having fallen by almost 10% in the last 24 hours to trade at around $34. According to daily charts, the DeFi coin is testing support in the $34-$35 range, with recent price action showing a bearish trend. The move follows a sharp correction from recent highs and reflects the broader market decline following last week’s liquidation of $19.3 billion.
HYPE token price chart | Source: TradingView
Although Hype temporarily recovered to $43.24 earlier in the week due to the launch of the HIP-3 upgrade, bulls failed to sustain the uptrend. The 30-day simple moving average (SMA) is currently around $45.27, well above the current price, highlighting ongoing weakness and confirming that HYPE remains in a bearish phase. The Moving Average Convergence Divergence (MACD) shows a bearish crossover, with the MACD line at -3.19, well below the signal line at -2.27, indicating that the market is currently dominated by sellers and selling momentum continues to increase.
If the HYPE price fails to hold the support around $34-35, a further decline towards $30 could be possible. On the other hand, a rebound above $37.50 would signal a possible reversal, but such a move would require significant buying interest to break current resistance. Investors should closely monitor the token’s price movement and market trends to make informed decisions.
For more information on the 21Shares 2x Long HYPE ETF and the latest developments in the DeFi space, please visit https://crypto.news/21shares-files-for-2x-leveraged-hype-etf-as-token-tests-critical-support/
