The hype price remained flat, failing to reverse multiple weeks’ downward trends despite the prominent asset managers filing Bitwise with the first Spot Exchange Trade Fund holding and tracking Hyperliquid tokens.
summary
- Even when Bitiwse applied for high-lipid ETFs, the hype prices remained on a downtrend for weeks.
- Bitwise’s Hype ETF is not eligible for accelerated approval based on the SEC’s new generic list standard.
On September 25, Bitwise filed Form S-1 with the U.S. Securities and Exchange Commission under the Securities Act of 1933, outlining the plans for the Bitwise Hyperliquid ETF.
According to filing, the fund directly retains high lipid (hype) tokens that act as native cryptocurrency for decentralized exchanges, thereby providing Wall Street investors with direct exposure to the market value of the token without requiring independence or interaction with the underlying blockchain infrastructure.
ETF also allows for in-kind work and redemption. This means that the fund’s stock can be exchanged for hype tokens rather than cash. This is an option recently approved to reduce friction and operational costs.
For the next step, Bitwise must submit Form 19b-4. This requires officially starting the SEC review process to determine whether ETFs can be listed on the national stock exchange.
Bitwise has yet to disclose the exchanges on which ETFs are listed, the tickers they trade with, or the administrative fees that investors can expect to pay.
Once these preliminary measures have been completed, the committee’s review period will begin once submission is granted.
Last week, the SEC approved a new general listing standard for Spot Crypto ETFs, allowing direct sign-offs to be bypassed if certain products meet certain criteria. Under the revised guidelines, ETFs can proceed to the list within just 75 days. Its underlying assets include aggressive futures contracts regulated by the Commodity Futures Trading Commission for at least six months, either traded in the market with surveillance-sharing agreements or account for at least 40% of existing list ETFs.
However, Bitise has admitted that the hype does not meet these criteria and states that “there is currently no high lipid futures contract registered with the CFTC.”
ETF filing usually opens up new paths for demand and gives greater facility visibility, thus messing up the price performance of assets. However, the hype moved sideways within a tough range between $40.11 and $43.46, making it hardly moving.
Hyperglycemia has been on a downtrend since reaching an all-time high of $59.30 on September 18th. The confluence of bearish catalysts, including early holder profit acquisition, increased competition from rival protocols, and concerns about future token unlocking appears to be gaining the enthusiasm generated by BitWise File.
At press, high lipids (hype) in the last 24 hours fell almost 1% at $42.41 after recovering some of the daily losses. In the weekly time frame, losses range in excess of 25%.