21Shares Introduces Hyperliquid ETP

Switzerland-based asset manager 21Shares has launched the first exchange-traded product (ETP) tied to the Hyperliquid token. Listed on the SIX Swiss Exchange, this offering enables institutional investors to access HYPE without digital wallets or onchain custody. According to 21Shares, the product provides a straightforward entry point into one of the fastest-growing decentralized finance platforms.

The announcement came shortly after HYPE reached an all-time high of $50.99, signaling increased interest from both retail and professional investors. Mandy Chiu, head of financial product development at 21Shares, described Hyperliquid’s growth as “extraordinary,” noting the strength of its underlying economics.

Hyperliquid’s Rapid Growth

Since its late 2022 launch, Hyperliquid has positioned itself as a leading decentralized exchange for perpetual futures. Built on its own layer-1 blockchain, the platform uses an onchain order book system that matches buy and sell orders directly. This design allows trades to clear in under one second, with no reliance on automated market makers, off-chain infrastructure, or external oracles.

The growth metrics are notable. Hyperliquid processes more than $8 billion in daily trading volume and has facilitated over $2 trillion in trades to date. In July 2025 alone, it recorded $319 billion in monthly trading volume, the highest ever for a DeFi perpetuals exchange. The platform also captured roughly 80% of all decentralized perpetuals activity and contributed 35% of total blockchain revenue for that month.

Financial Model and Token Stability

A key driver behind HYPE’s demand is Hyperliquid’s tokenomics. More than 95% of the exchange’s revenue, largely from trading fees, is allocated to daily buybacks of the HYPE token. This structure has already supported over $1 billion in token repurchases, reinforcing both demand and stability.

In addition, 76% of the HYPE token supply has been distributed to the community, while team tokens remain locked until 2028. Monthly revenues exceed $56 million, and the platform has grown without venture capital funding. These measures are seen as important steps toward limiting early sell pressure and supporting long-term value creation.

Expanding Beyond Trading

Hyperliquid is evolving beyond its role as a derivatives exchange. The project has introduced HyperEVM, a custom system that allows developers to build applications directly on its chain, extending utility to areas such as token issuance and liquidity provision. A partnership with Phantom wallet has further improved accessibility by giving mobile users access to advanced trading features.

Read more: Hyperliquid Review 2025: Features, Fees, Pros & Cons

Market Integrity Concerns

Despite its progress, Hyperliquid has faced challenges around market integrity. In July 2025, a suspected case of manipulation involving the XPL token on Plasma led to four large traders reportedly gaining nearly $48 million. The event raised concerns after the token’s price spiked 200% before smaller traders absorbed significant losses.

Earlier that month, a 37-minute outage temporarily halted trading, though Hyperliquid reimbursed $2 million in losses. The swift response was well received by its community, but the incident highlighted the operational risks that can occur on fast-growing platforms.

Outlook for Institutional Adoption

The launch of the 21Shares ETP marks the first time institutional investors have a regulated pathway into Hyperliquid’s ecosystem. While challenges remain, including questions around market fairness, the exchange’s rapid growth, high trading volumes, and strong financial model continue to attract attention.

Whether this new ETP will significantly expand institutional participation is still unfolding. For now, the Hyperliquid token gains institutional access in a way that positions it more firmly within traditional financial structures, bridging decentralized markets with regulated investment products.