Hype price remained flat and did not succeed in turning in his downtrend of several weeks, even when a prominent asset manager Bitwise submitted for the first spot exchange-related fund that holds and follows the token of Hyperliquid.
Summary
- Hype price remained in a downtrend of several weeks, even when Bitiwse applied for a hyperliquid ETF.
- The Hype ETF from Bitwise is not eligible for accelerated approval among the new generic list standards of the SEC.
On September 25, bit submitted A form S-1 for the US Securities and Exchange Commission under the 1933 Securities Act, where the plans for the Bitwise Hyperliquid ETF.
According to the submission, the fund will directly contain the hyperliquid (hype) token, which acts as the native cryptocurrency for the decentralized exchange, and therefore Wall Street-Investors offer direct exposure to the market value of the token without the need to close or interact with the underlying Blockchain infrastructure.
ETF will also make creations and repayments possible in kind, which means that shares of the fund can be exchanged for hype tokens instead of cash, an option that has recently been approved for crypto products to reduce friction and operational costs.
With regard to the next step, BitWise form 19b-4 must submit, which will formally initiate the assessment process of the SEC and determine whether the ETF can be stated on a national securities fair.
BitWise must not announce the exchange on which the ETF is mentioned, the ticker that would act, or the management costs that investors can expect to pay.
Once these provisional steps are completed, the committee’s assessment period starts as soon as it recognizes the submission, which can extend for up to 240 days.
Last week the SEC approved new generic list standards for Spot Crypto ETFs, so that certain products can circumvent direct cancellation if they meet specific criteria. According to the revised guidelines, an ETF can continue within only 75 days to mention, provided that its underlying assets has regulated active futures contracts by the Commodity Futures Trading Commission for at least six months, transactions on a market with surveillance sharing agreements, or already exists at least 40% of an existing mentioned ETF.
However, in his submission that Hype does not meet those criteria, which states that “there are currently no hyperliquid futures contracts have been registered with the CFTC.”
ETF reports usually predict well for the price performance of an active one, because they open new roads for demand and also provide larger institutional visibility. However, Hype saw little movement, because it moved sideways within a tight reach between $ 40.11 – $ 43.46.
Hyperliquid has been on a downward trend since he had a record high of $ 59.30 on 18 September 18 September.
At the time of the press, Hyperliquid (Hype) had fallen almost 1% at $ 42.41 in the last 24 hours, after he managed to repair some losses of the day. On the weekly period of time, the losses extend to more than 25%.
