21Shares Pushes for 2x HYPE ETF — DeFi Breakthrough or Volatility Trap? ⚡
In a bold move, 21Shares has filed for a 2x leveraged ETF tied to Hyperliquid’s HYPE Index, aiming to give traders amplified DeFi exposure within a regulated U.S. framework. If approved, the ETF would deliver double the daily performance of HYPE — ideal for short-term, tactical traders, not passive investors.
What It Means
The ETF seeks to let traders tap into HYPE’s on-chain revenue without using DeFi platforms directly. By wrapping decentralized cash flows in a daily-reset ETF, 21Shares is blending DeFi yield mechanics with traditional finance structure. Analysts call it “niche but potentially explosive,” and a pioneering step toward 40-Act-compliant DeFi products.
Market Tension
Despite the innovation, risk looms large. Leveraged ETFs are prone to volatility decay and NAV tracking issues, making them unsuitable for long-term holding. HYPE’s recent 11% drop to $34.39, an upcoming $11.9B unlock, and Arthur Hayes sell rumors have amplified market nerves — while ASTER is drawing some liquidity away.
Bottom Line
If it works, the 2x HYPE ETF could become a bridge between Wall Street and live DeFi yields. But for now, it’s a high-volatility weapon — powerful for skilled traders, punishing for the unprepared.
#DeFi #ETF #HYPE #21Shares #CryptoNews #TradingAlert
