21Shares Launches First Hyperliquid ETP, Sees Modest Debut

21Shares has launched the market's first exchange-traded product (ETP) tracking Hyperliquid's native token, THYP, though its debut saw a modest $1.8 million in trading volume. The fund, which offers institutional exposure to the token of the decentralized perpetuals exchange, began trading this week.

This initial volume, reported by Bloomberg ETF analyst James Seyffart, stands in stark contrast to the robust starts seen by other altcoin ETPs. For perspective, a spot XRP ETP garnered $58 million on its debut in November, while Bitwise's Solana ETP attracted $57 million on its first day. The significant difference in liquidity and investor interest highlights the varying appetites for new, more niche crypto assets in regulated investment vehicles.

Despite the comparatively low trading volume, the launch of THYP marks a notable expansion in the types of digital assets accessible via traditional financial instruments. Hyperliquid, a prominent player in the decentralized derivatives space, now has a regulated product offering, potentially opening its ecosystem to a broader institutional investor base that might otherwise be hesitant to engage directly with on-chain protocols.

The move by 21Shares also indicates a growing trend among asset managers to explore ETPs for tokens beyond the established giants like Bitcoin and Ethereum. This diversification reflects an evolving institutional landscape, where demand for exposure to high-growth, albeit higher-risk, altcoins is emerging.

Looking ahead, Seyffart predicts that Bitwise will be the next firm to launch a similar fund, noting that the company was the first to file an application for a Hyperliquid-linked ETP in the United States. Traders will be watching closely for Bitwise's next steps and how THYP's trading volume evolves in the coming weeks, as sustained liquidity will be crucial for its long-term viability and appeal to institutional capital.