A Tale of Two Strategies: Bitwise’s Bold Hyperliquid ETF Bet Meets SEC Caution

The path to altcoin ETFs is shaping up to be a story of bold gambits and regulatory patience. Asset manager Bitwise exemplifies the former, filing a prospectus for the first-ever Hyperliquid ETF.

The fund would track HYPE, the token of a decentralized perpetuals trading platform, bringing a complex DeFi primitive to the mainstream market.

Meanwhile, the Securities and Exchange Commission is preaching patience. The regulator delayed decisions on a suite of other altcoin ETFs, including spot funds for Avalanche, Sui, and staked tokens.

This dichotomy underscores the challenging landscape: while financial firms are eager to launch a diverse range of crypto products, the SEC is proceeding methodically, leaving the future of many proposed funds uncertain.