Latest developments: 21Shares says its new Hyperliquid ETF saw strong early traction after launching in the U.S.
- Eli Ndinga, global head of research at 21Shares, told Jennifer Sanasie on CoinDesk’s Public Keys that the product recorded more than $5 million in inflows within days of launch.
- The ETF also generated roughly $8 million in trading volume on Thursday alone, according to Ndinga.
- He said the firm previously launched a Hyperliquid product in Europe and viewed bringing the strategy to U.S. investors as a priority.
- The launch comes as asset managers race to roll out crypto-linked ETFs tied to newer blockchain ecosystems.
What this means: 21Shares is betting Hyperliquid can evolve beyond crypto trading into a broader financial marketplace.
- Ndinga said Hyperliquid’s appeal comes from letting traders access crypto, oil, silver and gold markets around the clock.
- He pointed to trading activity during recent geopolitical tensions involving Iran, when investors used Hyperliquid after traditional markets closed.
- Silver trading on Hyperliquid at one point represented roughly 2% of CME silver volume, he said.
- Ndinga argued the platform reflects demand for 24/7 financial infrastructure that traditional exchanges cannot currently provide.
The competition: The Hyperliquid ETF market is already getting crowded.
- Bitwise launched a competing Hyperliquid product days after 21Shares entered the market.
- Ndinga said 21Shares differentiates itself through its experience managing staking-enabled exchange-traded products.
- He said the firm relies on third-party staking providers rather than in-house infrastructure, arguing that approach improves transparency and reduces potential conflicts of interest.
- Ndinga said investors evaluating competing products should focus on custody, staking uptime and operational track records.
Reading between the lines: Hyperliquid’s growth is attracting attention from traditional finance circles.
- Ndinga described Hyperliquid as “beyond a crypto story,” calling it a broader financial innovation story.
- He said traders increasingly view the platform as a way to gauge market sentiment across multiple asset classes.
- Ndinga cited pre-IPO token activity tied to AI chipmaker Cerebras as an example of traders using Hyperliquid to assess demand before public listings.
- He added that traditional finance professionals increasingly recognize the value of always-on trading infrastructure.
The complication: Regulatory uncertainty remains one of the biggest risks for Hyperliquid.
- Hyperliquid is not available to U.S. users directly, though investors can gain exposure through ETFs tied to the HYPE token.
- Ndinga said Hyperliquid restricts access in certain jurisdictions to comply with local laws and sanctions requirements.
- He identified regulatory scrutiny and rising competition from rival trading platforms as the main bear-case risks for the ecosystem.
- Ndinga said proposed U.S. crypto legislation, including the Clarity Act, could eventually provide clearer rules for decentralized trading platforms.
