• 21Shares launches Hyperliquid ETP on SIX, giving institutions regulated DeFi derivatives exposure without custody.
• Hyperliquid leads DeFi perpetuals with $2T traded since 2023, $8B daily volume, and 80% market share.
• HYPE token hit $50.99 as the first institutional product boosts investor confidence and draws traditional capital.

Switzerland’s 21Shares has also expanded its crypto products and created a Hyperliquid exchange-traded product (ETP) listed on the SIX Swiss Exchange. The listing provides regulated access to Hyperliquid for investors, a rapidly expanding decentralized derivatives venue.

Notably, they exposed them to no prerequisite of digital wallets or on-chain custody so that institutions enter the DeFi derivatives market more effectively.

Hyperliquid is integrated with decentralized finance. As of 2023, it has traded a pool of over 2 trillion in total trades each day, with average volumes rated at over $8 billion a day. Hyperliquid leads around 80 percent of decentralized perpetuals volume today, making it a market leader in the niche of DeFi derivatives.

21Shares Backs Hyperliquid’s Growth

The timing of the listing aligns with strong project momentum. It boosted HYPE to a record high of $50.99 earlier this week. The new ETP is the inaugural institutional-grade offering directly linked to the protocol, and if the strategists are successful, the product will draw more traditional funds to the decentralized derivatives market segment.

Also Read: Hyperliquid (HYPE) Surges Toward $50 Target with Strong Bullish Momentum

The appearance of Hyperliquid was applauded by Mandy Chiu, the financial product development vice president of 21Shares. She aimed to emphasize the charismatic economics aspect of the protocol and showed optimism concerning the long-term possibilities of the protocol. These comments of Chiu demonstrate that 21Shares has confidence in the future of Hyperliquid.

Founded in 2018, a track record of crypto finance innovation exists at 21Shares. The firm introduced the first physically secured crypto ETP in the world, runs spot Bitcoin and Ether ETFs in the United States, and has a line of single-asset ETPs in Europe, such as Solana and Dogecoin, and basketized and staking-centered funds.

The platform reached general availability in late 2022 and includes a unique technical architecture. It has a decentralized layer 1 blockchain that supports a layer 1 perpetual futures exchange. In contrast to most DeFi protocols with automated market makers, the Platform does not rely on any oracles, relying instead on an on-chain order book to determine order matches and settle trades within less than a second.

Hyperliquid Hits Record Volumes Amid Market Strains

The platform has provided new trading volumes. As of July, it had the highest pre-month volume at any time in a DeFi perpetuals platform of $319 billion daily volume. The average perpetuals volume of that month, according to DefiLlama, was enormous, $487 billion, of which Hyperliquid delivered almost a third of the chain revenues.

Source: DefiLlama 

The platform employed over 600,000 registered users during the same time and was the seventh-largest global activity derivatives exchange on a daily basis. In spite of this success, there are setbacks. 

A 37-minute blackout on July 29 caused an issue in trading; the company responded quickly and offered a reimbursement of $2 million to users affected, a response generally well received by the community.

Furthermore, the lump sum mistricker of $48 million of the Plasma XPL token was allegedly manipulated by four traders earlier that week. The token increased by 200% and then crashed, resulting in the mass losses of smaller traders. This event reawakened the debate on transparency and best practice in DeFi markets moving fast.

Source: Spot On Chain

In the case of 21Shares, the Hyperliquid ETP is an indication of confidence in the future of the protocol that provides controlled investors with scalable access to decentralized derivatives. Nevertheless, it also shows the dangers of fast expansion of platforms ahead of the regulatory systems. The next few months will stand to be the ones where the platform will prove its capability of remaining dominant while fulfilling institutional expectations.

Also Read: Hyperliquid Smashes $51, Breakout Rally Targets $55 Next