21Shares Hyperliquid ETF Hits $37.2 Million AUM in First Week

The 21Shares Hyperliquid ETF (THYP) reached $37.2 million in assets under management during its first week of trading, marking a rapid start for the new U.S. investment vehicle. The fund, which provides exposure to the native HYPE token of the decentralized exchange Hyperliquid, recorded over $5 million in inflows within its first few days on the market [1].

The launch of THYP, alongside the 21Shares 2x Long HYPE ETF (TXXH), represents a push by 21Shares to bring decentralized finance infrastructure to traditional U.S. brokerage accounts [2]. Eli Ndinga, global head of research at 21Shares, noted that the firm prioritized bringing this strategy to American investors after seeing success with a similar product in Europe [1]. On a single day during its opening week, the ETF generated roughly $8 million in trading volume [1].

Hyperliquid has gained traction as a liquidity hub for decentralized derivatives, processing over $4 trillion in cumulative volume since its inception [2]. The platform allows users to trade crypto assets alongside traditional commodities like oil, silver, and gold around the clock [1]. According to Ndinga, traders increasingly turned to the platform during recent geopolitical tensions involving Iran, when traditional financial markets were closed [1]. At one point, silver trading on the platform accounted for approximately 2% of the total volume seen on the CME [1].

The market for these products is already becoming competitive, with Bitwise launching a rival Hyperliquid fund shortly after 21Shares entered the space [1]. 21Shares differentiates its offering by using third-party staking providers to manage rewards, a strategy the firm claims improves transparency and limits potential conflicts of interest [1].

While the growth of these ETFs highlights a bridge between traditional finance and decentralized protocols, the products carry distinct regulatory profiles. THYP is structured as a 33-Act spot ETP and does not provide the same oversight protections as 40-Act registered funds, such as an independent board of directors [2]. Because Hyperliquid itself is not directly available to U.S. users, these ETFs serve as the primary vehicle for domestic investors to gain exposure to the ecosystem [1].

As the firm navigates this new asset class, the long-term viability of these products remains tied to evolving U.S. crypto legislation, such as the proposed Clarity Act, which could eventually provide a more stable regulatory framework for decentralized trading platforms [1]. Whether these ETFs can maintain their early momentum depends on whether they can prove their utility as a reliable, always-on alternative to traditional financial infrastructure.