The DeFi landscape is evolving rapidly, with digital assets making strides in traditional financial markets. Bitwise's recent announcement of filing for a spot ETF with the SEC for Hyperliquid's HYPE token signifies a new chapter in this integration. Stay tuned for updates on this innovative development in the crypto space.
Bitwise‘s filing for a HYPE ETF under the ’33 Act aims to continuously issue shares, allowing investors to gain exposure to the value of Hyperliquid held by the Trust. Unlike futures-based products, this spot ETF will directly hold the HYPE token, offering a purer exposure to the underlying asset.
This move comes amid fierce competition in the decentralized perpetual exchanges (perp DEX) market, where Hyperliquid has established itself as a major player. The potential approval of this ETF by the SEC could not only further legitimize the DeFi space but also attract institutional and retail capital that has thus far been hesitant to engage directly with decentralized platforms. The ETF structure plans for physical HYPE tokens to be held in a custody account managed by Coinbase Custody, ensuring asset security.
The introduction of such a product on regulated markets could serve as a catalyst for broader adoption of DeFi protocols. By simplifying access to HYPE, Bitwise paves the way for a new wave of investors, potentially attracted by the yields and innovations of decentralized finance. This represents a test for the SEC, which must evaluate this ETF proposal directly linked to a DeFi token, marking a potential expansion of the DeFi market.
Hyperliquid’s HYPE token has recently demonstrated notable resilience. Following a period of volatility, HYPE jumped 5% from its key support at $39. This bounce at an important technical level is an encouraging sign, suggesting renewed buyer interest and the market’s ability to defend this threshold.
The next support levels to watch are at $35 and $32. These thresholds could act as anchor points in case of renewed selling pressure. To confirm a sustainable bullish trend, HYPE will need to reclaim resistance levels at $43 and $49 on a daily closing basis. A clear breakout above these levels, accompanied by significant volume, would validate a change in momentum and pave the way for new highs.
The impact of the Bitwise ETF on HYPE’s price is already tangible. Despite a recent 11% drop to $40.51 before the announcement, the token now trades around $41, with analysts targeting $55. This renewed interest, fueled by the prospect of institutional adoption, could propel HYPE toward higher valuations, even in the face of competition from other perpetual DEXs.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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