21Shares, a leading name in the cryptocurrency ETF sector, is reportedly participating in the bidding for a share of Hyperliquid's HYPE token, based on recent institutional trading activity. This development comes as crypto-backed ETFs experience heightened interest, notably following Bitwise Asset Management's launch of the first U.S. spot
Solana
staking ETF, which has attracted substantial institutional investment, according to
a Benzinga report
. The Bitwise Solana Staking ETF (BSOL) started with $217.2 million in assets under management and recorded $55.4 million in trading volume on its opening day, surpassing forecasts and reflecting increased institutional trust in Solana's (SOL) staking returns,
CoinDesk reported
.
The impressive debut of the Solana ETF has established it as a significant player in the growing crypto ETF sector. While
Bitcoin
and
Ethereum
ETFs captured much of the attention earlier this year, the Solana ETF has distinguished itself by providing access to the blockchain’s average staking yield of over 7%, as highlighted by Benzinga. Bloomberg ETF analyst Eric Balchunas pointed out that BSOL’s first-day trading volume—almost half that of the REX-Osprey Solana + Staking ETF (SSK)—demonstrates swift institutional uptake. In addition, Grayscale’s forthcoming Solana Trust ETF (GSOL), which will be listed on NYSE Arca, is anticipated to broaden the range of investment choices, according to CoinDesk.
Market observers are also monitoring 21Shares’ potential involvement with Hyperliquid’s HYPE token. The company’s possible move into the HYPE ETF market fits with its broader approach to diversify beyond Bitcoin and Ethereum, a direction accelerated by Solana’s staking success, according to
a Digital Journal article
. Hyperliquid, a derivatives exchange, saw its token price jump 9.43% in a single day after an SEC filing for a $1 billion public offering. The filing, which outlines plans for token repurchases and ecosystem growth, has drawn parallels to the robust infrastructure found in major crypto ETFs, as reported by Digital Journal.
The wider cryptocurrency market continues to experience
flux
, with Solana testing important support around $189 and Ethereum facing bearish sentiment as short sellers leverage over $650 million ahead of U.S.-China trade talks, according to
a Yahoo Finance analysis
. Despite these headwinds, the strong inflows into the Solana ETF indicate that institutional appetite for high-yield staking products is outstripping concerns over broader economic risks, as noted by Benzinga.
Matt Hougan, CIO of Bitwise, described the Solana ETF as "a major institutional success," emphasizing the blockchain’s leading role in generating on-chain revenue, as reported by Benzinga. However, the ETF’s initial 1.04% discount to its net asset value—compared to the higher premiums seen in Bitcoin and Ethereum ETFs—has sparked debate about whether the market is ready for newer crypto assets, according to
a Yahoo Finance report
. Experts attribute this to Solana’s smaller market size and overall market turbulence, though the asset’s 19% increase in daily trading volume to $7.5 billion points to rising liquidity.
As 21Shares and other companies compete to establish themselves in the next generation of crypto ETFs, the competition to attract institutional investment in tokens like HYPE and Solana highlights a changing environment. With the U.S. Securities and Exchange Commission approving more spot ETFs and staking models gaining popularity, the industry’s evolution may reshape how investors engage with blockchain assets, according to
a Coinpedia analysis
.
