Hyperliquid ETF Proposal Highlights Growing DeFi ETF Trend

Bitwise has taken a pretty bold step by filing for a new Hyperliquid ETF, as reported by Coin Bureau. This marks the first time that a DeFi token can be offered through a regulated ETF.  At the same time, the U.S. Securities and Exchange Commission (SEC) has delayed a lot of big decisions on altcoin ETFs. This mix of progress and doubts shows how the crypto industry is going forward but regulators are still being careful.

🚨BREAKING: Bitwise has filed a prospectus for a #Hyperliquid ETF, while the SEC pushes back decisions on multiple altcoin proposals. pic.twitter.com/uwSQkqgOsS

— Coin Bureau (@coinbureau) September 26, 2025

Bitwise Pushes Ahead with Hyperliquid

Bitwise wants to launch a spot ETF that is backed directly by the Hyperliquid (HYPE) token. Unlike futures products, this ETF will have the token itself. That makes it the same in structure to the Bitcoin spot ETFs that was approved earlier this year.

According to the filing, Coinbase Custody will hold the assets. Bitwise would deal with the fund as a sponsor. This setup shows what investors already see in the Bitcoin and Ethereum ETFs, but now it is highlighting a DeFi project .

The market reacted pretty fast. HYPE’s price went up around 4% after the news, and reached above $42 when this was reported. Traders and analysts said that this shows strong interest in growing more than the usual big names like Bitcoin and Ethereum.

SEC Slows Down on Other Altcoin ETFs

While Bitwise is moving fast, the SEC is moving quite slowly. Several ETF applications linked to XRP, Solana, Dogecoin and Ethereum staking have all gotten delayed. These also have filings from BlackRock, Franklin Templeton and Grayscale.

The delays push the final decisions to November. This is not new, as the SEC usually uses its full review time before deciding. But it does highlight on the regulator’s careful approach towards anything that is outside Bitcoin and Ethereum.

For investors, the message is pretty clear. New opportunities may be coming, but the SEC wants more time to check all the risks. Like market manipulation, liquidity and safe storage.

New Rules on ETF Listings

Part of this debate comes from the SEC’s new generic listing standards. As approved earlier in this month, these rules let some crypto ETFs to launch faster if they meet the proper rules.

Exchanges can now list qualifying funds without waiting for a long approval process. This could reduce the timeline from a lot of months to just 60–75 days.

Still, not every token will pass. A project must show that its market is liquid, that trading is clear and that it’s properly monitored. And custody also has to be strong to pass.

Some experts are ok with the change, saying it creates a clearer path for crypto ETFs. Others warn that giving more responsibility to exchanges could raise risks if weaker tokens somehow pass through.

What This Means for Crypto Investors

If approved, the Hyperliquid ETF would be the first one like this. It would give traditional investors safe and regulated access to a DeFi token. That could bring more trust and liquidity into the sector.

But for now, most of the altcoin ETFs are still waiting. The next few months will be key as the SEC gets closer to its deadlines. If more products get approved, the market could bring a lot of new money into mid size tokens.

But for now, investors are only waiting. Bitwise’s bold filing shows where the market wants to go. The SEC’s delays show how going forward will be slow and careful.