• Bitwise amends Hyperliquid ETF filing, signaling a potential year-end or early January launch.
• The amendment adds Section 8(a), ticker BHYP, and a 0.67% fee, often seen before ETF approval.
• SEC review continues as staking-based Hyperliquid ETFs face higher regulatory scrutiny.

Bitwise Asset Management has advanced its plan to launch a Hyperliquid ETF after filing an amended registration statement with US regulators. The update increases expectations that the fund could reach the market before the end of the year. Analysts view the filing as a late-stage procedural move. Investor focus now rests on the SEC’s final timing decision.

That amendment, dated December 15, was filed with the US Securities and Exchange Commission as Amendment No. 1 to the Form S-1 of Bitwise. The filing follows up on the initial registration filed under the Securities Act of 1933. It includes language that gives Bitwise the option to change the effective date until further notice or until the SEC establishes timing under Section 8(a) of the Act. 

In a post on X, Bloomberg senior ETF analyst Eric Balchunas drew attention to the filing. He noted that the amendment incorporated language in Section 8(a) and approved a management fee and a ticker symbol. Balchunas remarked that this information tends to emerge prior to the launch of a fund. His remarks implied that the approval might come in the near future.

Hyperliquid ETF Details Emerge as SEC Review Advances

In late September, Bitwise filed its S-1 registration of the Hyperliquid ETF. The SEC, under the current review framework, gives crypto ETF issuers a 30-60 day timeframe to become effective after first filing. The first amendment is usually viewed by the participants of the market as a final procedure. According to this time frame, the trading may commence in the second half of December or push to early January.

Source: X

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The revised prospectus refers to the proposed ticker symbol as “BHYP.” According to Reuters, the ETF might be listed on NYSE Arca in case it is approved. A unitary management fee of 0.67% per year is disclosed as well in the filing. This charge will be on the Hyperliquid of the trust and the operating expenses.

The Hyperliquid ETF is modeled as a trust. It will establish common shares of beneficial interest on a continuous basis. The fund will use the CF Hype Dollar US Settlement Price to calculate its net asset value. The CF Benchmarks Ltd. creates this reference rate by collecting and combining trade data from the chosen Hyperliquid trading platforms.

Bitwise Sets ETF Structure Amid Growing Hyperliquid Competition

A share of trust will be redeemed and sold for a basket of 10,000 shares. The baskets would represent the value of the underlying Hyperliquid per share. The calculation will compensate unpaid expenditure and liabilities. It is the typical creation and redemption scheme of crypto-linked ETFs.

The filing of Bitwise makes it one of the few issuers pursuing an approved exposure to Hyperliquid. VanEck, two weeks prior to Bitwise, registered to apply for a staking-oriented Hyperliquid ETF in the United States. VanEck has also sought two Hyperliquid ETF products in Europe. European regulators are less restrictive in crypto funds compared to the US authorities.

The SEC has not approved a Hyperliquid ETF yet. Staking-based versions are still not fully approved because exchange tokens are decentralized. Regulators are still examining the applicability of staking to current securities regulations. This warning has reduced the approval of more complicated crypto ETFs.

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