New York, May 12, 2026. Asset manager 21Shares began trading two exchange-traded funds tied to the HYPE token on the Nasdaq today, marking the first time a US-listed ETF has offered regulated exposure to Hyperliquid, the Layer-1 blockchain and decentralized derivatives exchange that commands more than half of the global decentralized perpetuals market by open interest, with some estimates placing its share above 70%.

The spot product, trading under the ticker THYP, tracks the FTSE Hyperliquid Index and carries an annual expense ratio of 0.30%. A separate leveraged product, TXXH, offers two-times long exposure to HYPE and carries a 1.89% annual fee.

Both are registered with the SEC, though under different regulatory frameworks: THYP falls under the Securities Act of 1933, while TXXH is registered under the Investment Company Act of 1940. An unnamed analyst cited by The Block described THYP's opening session as "very solid."

What Hyperliquid Is, and Why It Attracted a Wall Street Wrapper

Hyperliquid operates a fully on-chain central limit order book for perpetual futures contracts. Unlike most decentralized exchanges, it does not rely on automated market makers or external price oracles.

Every trade, liquidation, and funding payment settles directly on the protocol's own Layer-1 chain. Since launching its HYPE token in late 2024 with more than 76% of supply directed to the community, the platform has grown into the dominant venue for decentralized derivatives.

As of May 12, 2026, Hyperliquid's open interest stands at roughly $9.2 billion, and total value locked reaches approximately $5.0 billion. The protocol generated $57.8 million in fees over the past 30 days and recorded $176.6 billion in perpetuals volume over the same period. Annualized, that works out to approximately $705 million in fees and $629 million in protocol revenue. Roughly 97 to 99% of fee revenue is directed toward buying back HYPE tokens through the protocol's Assistance Fund. HYPE itself trades near $41, reflecting a market cap of approximately $10 billion, and has roughly doubled from its January 2026 low of around $20.90.

Structure and Custody

Anchorage Digital Bank and BitGo Bank and Trust serve as custodians. Bank of New York Mellon acts as administrator.

The staking provider is Figment, with 21Shares planning to stake between 30% and 70% of the THYP fund's underlying HYPE holdings. Staking rewards will be distributed quarterly, beginning in June 2026, then September and December.

Andres Valencia, EVP of Investment Management at 21Shares, framed the launch in terms of protocol fundamentals. "Hyperliquid has evolved into the de facto global liquidity hub for decentralized derivatives," he said. Valencia also cited "conviction in the strength of Hyperliquid's fundamentals" as central to the firm's decision to list these products.

What Changes for Institutional Investors, What Doesn't for Everyone Else

The THYP and TXXH listings follow the same logic as Bitcoin and Ethereum spot ETFs: package crypto exposure inside a regulated brokerage instrument so that pension funds, family offices, and wealth managers can participate without managing private keys or interacting with on-chain infrastructure directly. That logic applies most directly to institutional investors in jurisdictions with developed brokerage access to US-listed securities, including the UAE, Singapore, and South Africa.

For retail users across South Asia and Sub-Saharan Africa, the ETF changes relatively little in practice. Hyperliquid is accessible in approximately 190 countries. India currently ranks first globally in crypto adoption and Nigeria ranks second, according to the 2026 Global Crypto Adoption Index. Pakistan ranks eighth globally, with 18.2 million crypto users, reflecting the depth of retail engagement across South Asia.

Users in these countries already access Hyperliquid's perpetuals directly through non-custodial wallets, without needing a US brokerage account. The far more relevant mechanism for this cohort is the protocol's fee buyback structure, which supports the HYPE token they may already hold or trade.

Stablecoin adoption across Sub-Saharan Africa has grown more than 180% year over year, driven largely by remittances and savings needs, making the region one of the most active frontiers of on-chain finance.

India's 30% flat tax on crypto gains and 1% TDS (tax deducted at source, a withholding mechanism that exchanges apply to crypto transaction values) have pushed many retail traders toward offshore platforms. A THYP position would only be accessible to Indian investors with international brokerage access, limiting its immediate retail reach.

Still, a US-listed ETF referencing a DeFi protocol adds a legitimacy signal that regulators across Nigeria, Kenya, and South Africa are watching as they develop their own crypto asset frameworks. The 2026 Global Crypto Adoption Index also elevated Ethiopia to tenth place and Ghana to twentieth, reflecting how broadly the market is now expanding.

Competition and What Comes Next

21Shares is not alone in targeting this market. Bitwise has filed to list a HYPE ETF under the ticker BHYP on NYSE Arca. Grayscale has filed with the SEC for a competing product, GHYP, also targeting Nasdaq. Neither had launched as of today.

The broader context is sustained institutional appetite for wrapper-based investment products, with global ETF net inflows reaching record levels in 2025 per ETFGI. The DEX share of the overall crypto derivatives market has climbed from roughly 2% in early 2024 to around 10% today. Over the same two-year period, combined perpetuals volume grew approximately 75% to reach $7.24 trillion, and crypto derivatives now constitute roughly 73% of total crypto market volume. Together, these dynamics are accelerating the race to package leading DeFi protocols into regulated instruments.

How much institutional capital actually moves into THYP will depend, according to market observers, on HYPE's continued protocol growth and whether competitors can close the first-mover gap 21Shares now holds.