The Asset Manager Bitwise has filed to launch a funds exchanged by the exchange that holds and monitors a crypto token tied to the eternal futures protocol and blockchain hyperliquid.
The company has bid to launch the Bitwise Hyperliquid ETF, according to a regulation filing on Thursday. It holds directly hyperliquid (hype), a token that provides discounts on its decentralized exchange (Dex) and used to pay fees on its blockchain.
File has not yet recognized the exchange where the product is a merchant, the ticker where it is a trader, or the fees that Bitwise will charge.
Bitwise filing comes as competition between Perpetual futures Dexs warmed up after Aster launched a token earlier this month saw its trading volume and Open interest surge past Hyperliquid, which has long held the top area for trading on onchain futures.
Hyperliquid ETF to offer in-kind redemption
Bitwise filing says Hype ETF directly holds the token and “seeks to provide exposure to the amount of hyperliquid that holds confidence,” similar to the very popular bitcoin (Btc) and ether (Eth) Launched ETFs last year.
The product will also offer in-kind creation and redemption, which allows fund shares to exchange for hype tokens instead of cash.
THE SECURITIES AND EXCHANGE COMMISSION allowed in-kind creation and redemption for crypto products in July, which is charged as “less expensive and better.”
File is the first step before launch
Bitwise filing is a form S-1 to register its ETF in the SEC under the Securities Act of 1933, the so-called “33 Act,” which allows its product to directly handle the crypto token.
The ETF will also need a 19B-4 form to kick the agency’s approval process, which can take up to 240 days before it is approved.
Related: Machi Big Brother came out of $ 25M Hype Bet at $ 4M Loss as rivals ate Hyperliquid Market Share
Earlier this month, the SEC Approved generic listing standards For Crypto ETFs to scrap the need to assess each product and accelerate approval, allowing shorter approvals of time to time if the underlying property is exchanged within six months of a commission-controlled commission exchange.
However, Bitwise noted in its filing that “currently there are no hyperliquid futures contracts registered with the CFTC.”
Aster Open Interest Surge, Triple Hyperliquid Volume
Aster, an eternal futures dex native to the BNB chain, has seen a recent advance in trading volume and Open interest Far above many of its rivals.
The exchange is a major driver of continuous trading volume in Dex, hitting A full time high of $ 70 billion on Thursday, with its volume in the last 24 hours exceeding $ 35.8 billion, more than $ 10 billion hyperliquid tripling at the same time, per Delete.
Coinglass Shut up Open interest in the Aster (Aster) token, the remaining contracts have not been repaired, press $ 1.15 billion on Thursday, from under $ 143 million days before Saturday, September 20.
Meanwhile, open interest in the hype token dropped 1.85% in the previous day to $ 2.2 billion, with a token price dropped by 3.5% at that time at $ 42.5, per Coinglass.
