Asset manager 21Shares aims to bring institutional exposure to the DeFi space with its latest HYPE ETF filing. Meanwhile, the token is under pressure as it tests key support levels.
Summary
- 21Shares files for the 2x leveraged HYPE ETF, aiming to double daily returns.
- Leverage exposure will be achieved using swaps, eliminating the need for token custody.
- The HYPE token is testing crucial support at $34-$35 after a recent 7% decline, with bearish indicators such as a MACD crossover and RSI pointing to further downside risk.
- If HYPE fails to hold the support level, there could be a decline towards USD 30, but a break above USD 37.50 could mark a possible reversal.
21Shares has filed with the U.S. Securities and Exchange Commission (SEC) for approval of a 21Shares 2x Long HYPE ETF. The proposed fund aims to deliver double the daily returns of Hyperliquid and provide exposure to the DeFi token. If approved, it would be the first US-listed leveraged ETF to track the fees and perpetual market performance of a live DeFi protocol.
The submitfiled on October 16, outlines that the 21Shares 2x Long HYPE ETF aims to replicate twice the daily performance of HYPE (HYPE), before fees and expenses. The fund will invest in a combination of swap agreements, options and possibly Spot HYPE Exchange-Traded Products (ETPs), although there are currently no US-based Spot HYPE ETPs available for investment.
21Share’s proposal aims to provide exposure to HYPE’s perpetual futures system using a daily reset structure, which is unconventional compared to typical crypto funds. Rather than holding tokens directly, the ETF will use swap derivatives to achieve leveraged exposure to HYPE. This unique structure allows investors to benefit from the growth of the DeFi ecosystem without the need for token custody.
Meanwhile, other top asset managers, including Bitwise, have submitted similar proposals for a spot HYPE ETF, reflecting growing institutional interest in exploring DeFi assets through regulated investment vehicles.
HYPE ETF buzz fails to boost token price
Despite the latest developments, the HYPE token is currently under pressure. Currently trading around $34, HYPE is down almost 10% in the last 24 hours, according to crypto.news data. Based on daily charts, the DeFi coin is currently testing support around the $34-35 region, with recent price action showing a downward trend. This move follows a sharp correction from recent highs and reflects the broader market decline following last week’s $19.3 billion liquidation.
Although Hype temporarily recovered to $43.24, fueled by the launch of the HIP-3 upgrade earlier this week, the bulls failed to maintain the uptrend. The 30-day simple moving average (SMA) is currently around $45.27, well above the current price, highlighting continued weakness and confirming that HYPE is in a bearish phase.
Meanwhile, the Moving Average Convergence Divergence (MACD) is showing a bearish crossover, with the MACD line at -3.19, well below the signal line at -2.27. This confirms that the market is currently dominated by sellers, and the negative histogram bars suggest that selling momentum continues to increase.
If HYPE price fails to hold the support around $34-35, a further decline towards $30 could be in the cards. On the other hand, a recovery above $37.50 could signal a potential reversal, but such a move would require significant buying interest to break above the current resistance.
Disclosure: This article does not represent investment advice. The content and materials on this page are for educational purposes only.
