Hyperliquid News Today: Increased Interest from Institutions Fuels Altcoin ETF Expansion as SEC Simplifies Approval Process

The cryptocurrency ETF sector is undergoing swift transformation, as 21Shares has joined the competition by submitting an application for a Hyperliquid ETF (HYPE), while Bitwise’s

Staking ETF (BSOL) has drawn significant market interest due to its strong performance. These moves highlight the increasing institutional appetite for alternative digital assets and reflect the SEC’s evolving stance on regulation.

21Shares has filed its proposal for the Hyperliquid ETF with the U.S. Securities and Exchange Commission, intending to mirror the performance of the HYPE token, which is the backbone of the Hyperliquid decentralized exchange (DEX) focused on perpetual futures. The ETF plans to use

Custody and BitGo for asset safekeeping, following the industry’s preference for regulated custodians. This action comes after Bitwise’s similar application in September, positioning HYPE among the latest alternative coins to attract ETF attention, as noted in a . HYPE is currently valued at $47.55, with a market cap of $12.7 billion, and has jumped 32% in the last week, indicating rising demand, according to a .

At the same time, Bitwise’s Solana Staking ETF (BSOL) has emerged as a top performer. On its second day of trading,

saw $72.4 million in trading volume, up 29% from its $56 million opening day. Bloomberg’s Eric Balchunas described this as a “remarkable figure,” pointing out that most ETFs experience a drop in volume after their launch, according to a . The ETF attracted $69.5 million in inflows on its first day, raising its total assets to $292 million, as reported by . Other players, such as Grayscale’s Solana Trust ETF (GSOL) and REX Osprey’s SSK, have also entered the field, but BSOL’s early momentum demonstrates Solana’s growing appeal to institutional investors, according to a .

The competition among Solana ETFs has intensified, with Grayscale introducing GSOL on NYSE Arca at a 0.35% expense ratio and staking nearly 75% of its assets to generate returns (as previously mentioned). However, Balchunas observed that GSOL’s $4 million in opening day volume was modest compared to BSOL’s, highlighting the difficulties of entering a saturated market, as an

pointed out. Bitwise’s CIO, Matt Hougan, credited BSOL’s rapid growth to Solana’s leadership in on-chain revenue and the strong institutional demand for staking-based products (as previously reported).

The wider digital asset market has also gained momentum.

, for example, climbed 88% from its monthly low, fueled by inflows into XRP ETFs and increased CME futures open interest, according to a . (BTC) also recovered, surpassing $110,000, supported by $446.6 million in spot ETF inflows for the week ending October 24, as reported by an .

Regulatory changes continue to influence the industry. The SEC’s latest guidance, which permits S-1 filings without “delaying amendments,” has sped up the approval process, with more than 90 crypto ETF applications currently under review, including those for Solana,

, and , as Coinotag previously reported. While Bitcoin and ETFs remain dominant with $155 billion and $23.4 billion in assets respectively, a notes that alternative coin ETFs are gaining popularity as investors look for broader exposure.

As HYPE and Solana ETFs undergo regulatory review, their results may indicate a larger trend toward institutional involvement in alternative blockchain assets. With SEC decisions on the horizon and ongoing market fluctuations, the next few months will be crucial for these funds and the broader crypto market.