Asset manager 21Shares aims to bring institutional exposure to the DeFi space with its latest HYPE ETF filing. Meanwhile, the token is facing pressure as it tests key support levels.
Summary
- 21Shares files for the 2x leveraged HYPE ETF, targeting double the daily returns.
- Leverage exposure will be achieved using swaps, eliminating the need for token custody.
- HYPE token is testing crucial support at $34-$35 after a recent 7% drop, with bearish indicators like a MACD crossover and RSI suggesting further downside risk.
- If HYPE fails to hold the support level, it could see a decline to $30, but a break above $37.50 would signal a potential reversal.
21Shares has filed with the U.S. Securities and Exchange Commission (SEC) for approval of a 21Shares 2x Long HYPE ETF. The proposed fund aims to deliver double the daily returns of Hyperliquid, offering exposure to the DeFi token. If approved, it would be the first U.S.-listed leveraged ETF to track the fees and perpetual market performance of a live DeFi protocol.
The filing, submitted on October 16, outlines that the 21Shares 2x Long HYPE ETF seeks to replicate twice the daily performance of HYPE (HYPE), before fees and expenses. The fund will invest in a combination of swap agreements, options, and possibly Spot HYPE Exchange-Traded Products (ETPs), though no U.S.-based Spot HYPE ETPs are currently available for investment.
21Share’s proposal aims to provide exposure to HYPE’s perpetual futures system using a daily reset structure, which is unconventional compared to typical crypto funds. Instead of holding tokens directly, the ETF will utilize swap derivatives to achieve leveraged exposure to HYPE. This unique structure allows investors to benefit from the growth of the DeFi ecosystem without the need for token custody.
Meanwhile, other top asset managers, including Bitwise, have submitted similar proposals for
Go to Source to See Full Article
Author: Grace Abidemi
