Wall Street is making a move! Bitwise has submitted the first Hyperliquid ETF application for U.S. stocks.

While the SEC postponed the approval of several altcoin ETFs, crypto assets management giant Bitwise unexpectedly submitted an application for an exchange-traded fund tracking the performance of Hyperliquid, which has sparked strong reactions in the crypto market. Hyperliquid, as a Layer 1 blockchain focused on perpetual futures trading, has a native token HYPE with a market capitalization of $11 billion, making it the 21st largest crypto asset. Does this application signal a new trend in the ETF space and a shift in the SEC's attitude towards crypto derivation?

Bitwise Takes a Bold Step: The First Hyperliquid ETF Application Shakes the Market

According to the S-1 filing submitted to the SEC, the Bitwise Hyperliquid ETF will be the first exchange-traded fund seeking to track the performance of HYPE Token. The timing of this application is particularly noteworthy, as it comes against the backdrop of the SEC delaying approvals for multiple altcoin ETFs.

Hyperliquid is a Layer 1 Blockchain specifically designed for decentralized financial applications, with its core functionality focused on perpetual futures trading. Unlike other mainstream public chains, Hyperliquid has concentrated on derivation trading scenarios from its inception, giving it a unique positioning in the DeFi space.

According to price data from The Block, HYPE has dropped 11.5% in the past 24 hours to $40.51. The Token currently has a circulating supply of 270.8 million coins and a market capitalization of $11 billion, making it the 21st ranked Crypto Assets by market capitalization.

Venture capitalist and StockTwits co-founder Howard Lindzon commented on this application on social media: "Everyone should fall from grace... this is real-time pricing. The Web 2.0 era is so unique, it's the best time for seed and early-stage venture capitalists. Nowadays, everyone wants to get in early (to become the next superstar), locking up their capital in a foolish way when the public market is the best focus point."

SEC delays approval of multiple alts ETFs: market landscape affected

In sharp contrast to Bitwise's proactive actions, the SEC has recently postponed the approval timelines for several altcoin ETF proposals. The postponed proposals include:

· Canary's spot SUI fund

· Canary's spot PENGU fund

· Canary's staking INJ fund

· The staking SEI fund of Canary

· Grayscale's spot Avalanche proposal

· VanEck's spot Avalanche proposal

These postponement decisions have sparked market speculation that the SEC may be reevaluating its approval strategy for altcoin ETFs. Currently, dozens of ETF applications related to crypto assets are awaiting approval, covering a wide range from mainstream crypto assets to emerging tokens.

Analysts point out that the SEC's decision to delay may reflect the regulatory body’s cautious attitude towards the altcoin market, especially considering the volatility and liquidity issues of these assets. However, Bitwise's choice to submit the Hyperliquid ETF application at this moment may indicate that the company sees the SEC's attitude towards certain types of crypto assets is changing.

Hyperliquid: The Rising Star of DeFi Derivation Trading

To understand the importance of the Bitwise application, it is necessary to delve into Hyperliquid's unique positioning and market value.

Hyperliquid is a Layer 1 Blockchain specifically designed for DeFi applications, with key features including:

Focusing on perpetual futures trading: Unlike most generic blockchains, Hyperliquid has been designed with a focus on derivation trading scenarios from the very beginning.

High-performance trading engine: supports high-frequency trading and complex derivation contracts.

Decentralized Order Book: Provides a trading experience similar to centralized exchanges while maintaining decentralized control of assets.

Low-latency settlement: A settlement mechanism optimized for derivation trading, significantly reducing transaction delays.

Hyperliquid's native Token HYPE has performed strongly over the past year, rising from under 5 dollars to a peak of over 60 dollars, reflecting the strong demand in the market for professional DeFi derivation platforms.

New Trends in the ETF Market: From Spot to Derivation

Bitwise's Hyperliquid ETF application may signify an important shift in the crypto ETF market: an expansion from purely spot ETFs to derivation-related ETFs.

This transformation has multiple meanings:

· Product diversification: Providing investors with more diverse investment options in Crypto Assets.

· Risk management tools: Derivation-related ETFs may become important tools for institutional investors to manage cryptocurrency risks.

· Market maturity indicators: Reflect the increasing maturity of the infrastructure in the crypto market.

· Change in regulatory attitude: This may indicate that the SEC is expanding its acceptance of the Crypto Assets category.

It is noteworthy that on September 25, Hashdex expanded its cryptocurrency ETF to include XRP and Solana following the SEC's recent approval of broader listing standards. This move, along with Bitwise's application, may signal that the crypto ETF market is entering a new phase.

Market Reaction and Future Outlook

Bitwise's Hyperliquid ETF application has sparked widespread discussion in the market, with expert opinions divided into two camps:

Optimists believe:

This represents the natural evolution of the crypto ETF market, expanding from Bitcoin and Ethereum to more specialized Crypto Assets.

As an industry-leading asset management company, Bitwise's application may have a higher chance of approval.

Successfully approved will bring more institutional funds to the DeFi derivation market.

Cautious faction points out:

The SEC's review of derivation-related crypto assets may be stricter.

Hyperliquid, as a platform focused on perpetual futures, may raise concerns from regulators regarding leverage risks.

The current trend of the SEC delaying the approval of multiple altcoin ETFs is unfavorable for the quick approval of new applications.

Regardless, Bitwise's application has undoubtedly injected new vitality into the crypto ETF market and may prompt other asset management companies to reassess their product strategies.

How should investors respond?

In response to this development, investors may consider the following strategies:

Pay close attention to regulatory dynamics: The SEC's response to Bitwise's application will provide important regulatory signals.

Assessing the fundamentals of Hyperliquid: Understanding the value proposition and long-term development prospects of the HYPE Token.

Diversified portfolio: Do not concentrate all funds on a single type of crypto assets.

Institutional Direction: The attitude of institutional investors towards Hyperliquid may signal market trends.

Conclusion: A New Chapter in the ETF Track

Bitwise submitted a Hyperliquid ETF application, which is particularly noteworthy against the backdrop of the SEC delaying approvals for multiple alts ETFs. This move could mark the beginning of the crypto ETF market's transition from purely spot products to a more diversified and professional direction.

As the crypto market continues to mature, the demand from investors for diversified products is also growing. Bitwise's application may be a response to this demand, or it may be a proactive layout in anticipation of changes in the regulatory environment.

Regardless of how the SEC ultimately decides, this application will become an important indicator for observing the regulatory trends of crypto ETFs, and is worth close attention from market participants.