Bitwise Asset Management, a prominent crypto asset manager, submitted a Form S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to launch the Bitwise Hyperliquid ETF.
This would be the first spot ETF in the U.S. to hold and track HYPE, the native token of Hyperliquid, a blockchain-based perpetual futures decentralized exchange (DEX). The ETF aims to provide investors with regulated exposure to HYPE through traditional brokerage accounts, without requiring direct custody of the token.
Coinbase Custody Trust Company will handle asset storage. Bitwise Investment Advisers. The fund will support in-kind creations and redemptions, allowing authorized participants to exchange ETF shares for actual HYPE tokens or vice versa instead of cash.
This mechanism, approved by the SEC in July 2025, is designed to reduce costs and improve efficiency compared to cash-based models. Modeled after spot Bitcoin and Ethereum ETFs, the trust will directly hold HYPE tokens to reflect their market value.
The filing comes amid growing competition in the perpetual DEX space, where Hyperliquid faces rivals like Aster and Lighter, which have recently surpassed its 24-hour trading volume. Despite this, the news highlights increasing institutional interest in altcoin ETFs, following approvals for products like the REX-Osprey XRP ETF earlier in September.
However, Bitwise noted that HYPE does not currently qualify for accelerated SEC review under new generic listing standards, as there are no CFTC-registered Hyperliquid futures contracts. The next step is filing a Form 19b-4 to initiate formal SEC review, which could take up to 240 days.
Market reaction was muted: HYPE traded around $42.50 on September 25, up about 4% initially but flat overall amid a broader multi-week downtrend. Analysts like Bloomberg’s James Seyffart expressed optimism for approval in the “near future,” potentially boosting HYPE toward $55 if institutional inflows materialize.
Circle Explores Allowing USDC Transactions to Be Reversed
Circle Internet Financial, issuer of the USDC stablecoin (the second-largest by market cap), is investigating mechanisms to make certain USDC transactions reversible, primarily to aid recovery of funds lost to fraud, hacks, or errors.
This exploration, marks a departure from blockchain’s core principle of transaction immutability, where transfers are final and irreversible once confirmed. Circle President Heath Tarbert discussed the idea in an interview with the Financial Times, emphasizing the tension between instant settlement and the need for recourse in traditional finance (TradFi).
Currently, Circle can freeze or blacklist addresses it froze $58 million in USDC linked to a Solana scandal in May 2025 but it cannot undo completed transactions. Proposed reversals would likely involve: Limited to “certain circumstances” like proven fraud, with agreement from all parties involved.
Not at the base layer of Circle’s upcoming Arc blockchain announced in August 2025 as an enterprise-grade L1 for stablecoin payments, using USDC as its native gas token. Instead, it could use developer modules or an overlay layer for “counter-payments” or refunds, similar to credit card chargebacks.
Arc plans to include opt-in privacy to hide transaction amounts while revealing wallet addresses. Proponents argue this could build trust for mainstream adoption, aligning USDC with legacy systems and potentially expanding its role in payments and capital markets. Goldman Sachs forecasts USDC’s market cap could grow by $77 billion to 2027 under such enhancements.
However, critics worry it introduces centralization risks, undermining crypto’s decentralized ethos and raising questions about who controls reversal decisions. Circle’s official USDC terms still state that transactions are irreversible, so this remains exploratory.
The company has not detailed exact parameters or timelines, but its Refund Protocol could serve as a foundation. This push aligns with Circle’s institutional focus, including integrations like Fireblocks for enterprise custody.
