Hyperliquid Token Unlocks Massive Institutional Access with New 21Shares ETP

The **Hyperliquid token** has achieved a significant milestone, opening doors for institutional investors. This development marks a pivotal moment for the growing decentralized finance (DeFi) sector. Traditionally, institutional access to volatile crypto assets has faced barriers. However, a new Exchange-Traded Product (ETP) changes this landscape. This move underscores the increasing maturity and acceptance of digital assets within traditional finance.

Hyperliquid Token Gains Institutional Traction

Institutional investors now have their first regulated exposure to Hyperliquid’s native token. This access comes through a Europe-listed crypto ETP. Specifically, 21Shares, a Switzerland-based asset manager, has listed the **Hyperliquid ETP** on the SIX Swiss Exchange. This product allows investors to gain exposure to the **Hyperliquid token** without needing to manage wallets or on-chain custody. Consequently, it simplifies the investment process significantly. 21Shares, founded in 2018, holds a strong track record in launching regulated crypto products. For instance, they introduced the first physically-backed crypto ETP. They also offer spot Bitcoin and Ether ETFs in the US. Furthermore, they provide a suite of crypto ETPs in Europe. These include single-asset products for Solana and Dogecoin, diversified baskets, and staking-focused funds. The listing represents a major step towards broader **institutional crypto** adoption.

Understanding Hyperliquid: A Decentralized Derivatives Powerhouse

Hyperliquid stands out as a major venue for **decentralized derivatives**. It is a Layer-1 blockchain that hosts a decentralized exchange for perpetual futures. Unlike many DeFi platforms, Hyperliquid uses a traditional on-chain order book. This system directly matches buy and sell orders. It clears trades in under a second. Moreover, it operates without external oracles or off-chain infrastructure. Users connect via wallets to place spot or perpetual orders. These orders settle natively on-chain. This unique approach ensures high efficiency and transparency. The platform boasts impressive figures. It processes over $8 billion in daily volume. Since its 2023 launch, it has handled $2 trillion in trades. It also captures roughly 80% of the total decentralized perpetuals activity. This robust performance highlights its dominant position in the market.

The Mechanics of the HYPE Token Economy

Trading fees on the Hyperliquid platform are integral to its native asset, the **HYPE token**. These fees are funneled into daily buybacks of the token. This economic model fuels rapid growth. It aligns the interests of the protocol with its token holders. The **HYPE token** recently hit a record high of $50.99. This surge occurred just days before the ETP listing. Mandy Chiu, head of financial product development at 21Shares, praised Hyperliquid’s trajectory. She stated its growth has been extraordinary. Chiu also noted its underlying economics are among the most compelling in the space. This positive sentiment underscores the token’s strong market performance.

Hyperliquid’s Meteoric Rise in Decentralized Derivatives

Hyperliquid, launched in late 2022, has shown remarkable growth. It has set records in trading volume, revenue, and user activity. For example, in July, the exchange processed $319 billion in trades. This figure represents the highest monthly volume ever for a DeFi perpetuals platform. This performance pushed total decentralized perp volume to nearly $487 billion, according to DefiLlama. The platform also captured 35% of all blockchain revenue that month. Analysts at VanEck suggested this share came at the expense of Solana, Ethereum, and BNB Chain. Hyperliquid emerged as the seventh-largest derivatives exchange overall by daily activity. It surpassed 600,000 registered users in July. These metrics clearly demonstrate Hyperliquid’s rapid ascent and significant market penetration in the **decentralized derivatives** space.

Navigating Challenges and Bolstering Institutional Crypto Trust

Despite its rapid growth, Hyperliquid has faced challenges. On July 29, a 37-minute API outage temporarily sidelined traders. However, Hyperliquid responded swiftly. They reimbursed $2 million in losses. This quick action drew praise from its community. Nevertheless, concerns about market integrity emerged recently. Four large traders pocketed nearly $48 million. This incident involved suspected manipulation of Plasma’s XPL token. The token briefly spiked 200% to $1.80. Smaller traders absorbed significant losses. Such incidents highlight the complexities of decentralized markets. Building trust remains paramount for increasing **institutional crypto** adoption. Transparency and robust risk management are crucial for attracting and retaining institutional capital. Therefore, Hyperliquid’s handling of future incidents will be closely watched.

Future Outlook for the HYPE Token and Decentralized Finance

Optimism around Hyperliquid’s long-term trajectory continues to build. BitMEX co-founder Arthur Hayes shared a bold prediction at the WebX 2025 conference. He expects the **HYPE token** to rise 126-fold over the next three years. Hayes cited the expansion of stablecoins as a key factor. He also pointed to the exchange’s surging fee revenue. These elements collectively contribute to a bullish outlook. The **Hyperliquid token** is now more accessible than ever through the **21Shares ETP**. This development could catalyze further growth. It also sets a precedent for other decentralized protocols seeking institutional investment. The increasing institutional interest signifies a broader trend. DeFi is maturing and gaining credibility in the global financial landscape. Consequently, we anticipate more innovative products bridging traditional and decentralized finance.