Asset manager 21Shares has filed for a 2x leveraged HYPE ETF with the U.S. SEC. This ETF aims to offer double the daily returns of Hyperliquid, a DeFi token. If approved, it would be the first U.S.-listed leveraged ETF tracking a live DeFi protocol’s performance.
The filing, made on October 16, explains that the ETF will use swaps and options to replicate twice the daily performance of HYPE. Unlike traditional crypto funds, this ETF won’t hold tokens directly. Instead, it will use swap derivatives to achieve leveraged exposure.This approach lets investors benefit from DeFi growth without needing to custody tokens.
Other asset managers, like Bitwise, have also proposed spot HYPE ETFs. This shows growing institutional interest in regulated DeFi investments.
However, the HYPE token is under pressure. It’s currently trading around $34, down nearly 10% in the last 24 hours.The token is testing crucial support at $34-$35. If it fails to hold this level, it could drop to $30. But a break above $37.50 could signal a reversal.
Technical indicators like the MACD and RSI suggest further downside risk. The MACD shows a bearish crossover, indicating strong selling momentum. For a potential recovery,significant buying interest is needed to push the price above $37.50.
