21Shares has launched the first exchange-traded fund based on Hyperliquid.

Cryptopolitan, a blockchain media outlet, reported on May 13 that the ETF posted $1.8 million in turnover on its first trading day, with net inflows tallied at about $1.2 million.

The product began trading on Nasdaq under the ticker THYP. It is designed to give investors price exposure without directly holding Hyperliquid's native token, HYPE. 21Shares also introduced a leveraged ETF, TXXH, which tracks twice the daily return of HYPE.

The first-day performance is not large compared with recent altcoin ETF launches. The first XRP spot ETF attracted $58 million on its first day of trading in November last year, and Bitwise's first Solana spot ETF recorded $57 million in turnover. The smaller market size of HYPE compared with those major altcoins is also cited as a factor to consider.

The product structures also differ. THYP is structured as an exchange-traded product under the framework of the Securities Act of 1933, so it does not include some investor-protection mechanisms that apply to funds registered under the Investment Company Act of 1940. These include oversight by an independent board. By contrast, TXXH, the 2x leveraged product, is an ETF registered under the 1940 Act.

THYP has a management fee of 0.30 percent, which 21Shares said is currently the lowest level among Hyperliquid ETFs.

The fund also holds HYPE physically and tracks the FTSE Hyperliquid index. It also plans to stake some of the HYPE held by the ETF if conditions allow. Staking rewards are structured to be paid quarterly from June 30, 2026 through year-end.

Andres Valencia (안드레스 발렌시아), senior vice president of investment management at 21Shares, said he is confident in Hyperliquid's fundamentals. Hyperliquid has processed cumulative turnover of more than $4 trillion since launch and accounts for more than 50 percent of open interest in decentralized exchange perpetual futures. Daily trading volume is about $8 billion.

Market assessments were mixed. Bloomberg ETF analyst James Seyffart (제임스 세이파트) said the early trading was firmer than an average ETF launch. He added that the size itself was not excessively large.

Competition in Hyperliquid spot ETFs also appears to be intensifying. Seyffart said it is likely that Bitwise's Hyperliquid spot ETF could be the next to enter the market. Bitwise, the asset manager that first applied for approval of a HYPE-based fund in the United States, recently submitted a second amendment expanding its list of counterparties. Grayscale is also pursuing a Hyperliquid spot ETF, forming a competitive landscape among major asset managers.

This ETF launch is expected to broaden access to institutional investment in Hyperliquid. Key points to watch will be whether the race for follow-on product approvals and the staking structure lead to actual capital inflows.