Altcoin ETF Race Heats Up as Bitwise Bets on Hyperliquid, SEC Hits Pause on Rivals

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The competition to launch the next wave of crypto ETFs intensified as asset manager Bitwise filed for a fund tracking Hyperliquid’s HYPE token.

The proposal arrives as the SEC delays several competing altcoin ETF applications, signaling a selective and gradual approval process.

Hyperliquid, a blockchain for decentralized perpetual futures trading, has a native token (HYPE) with a market cap of $11 billion.

The filing was met with enthusiasm from some investors, like venture capitalist Howard Lindzon, who hailed it as “degeneracy for all.” However, the SEC’s simultaneous delays for spot funds tracking Avalanche, Sui, and other assets underscore the significant hurdles that remain for most altcoin ETFs seeking market access.