21Shares says Hyperliquid ETF demand shows appetite for 24/7 trading
Latest developments: 21Shares says its new Hyperliquid ETF saw strong early traction after launching in the U.S.
Eli Ndinga, global head of research at 21Shares, told Jennifer Sanasie on CoinDesk's Public Keys that the product recorded more than $5 million in inflows within days of launch.
The ETF also generated roughly $8 million in trading volume on Thursday alone, according to Ndinga.
He said the firm previously launched a Hyperliquid product in Europe and viewed bringing the strategy to U.S. investors as a priority.
The launch comes as asset managers race to roll out crypto-linked ETFs tied to newer blockchain ecosystems.
What this means: 21Shares is betting Hyperliquid can evolve beyond crypto trading into a broader financial marketplace.
Ndinga said Hyperliquid’s appeal comes from letting traders access crypto, oil, silver and gold markets around the clock.
He pointed to trading activity during recent geopolitical tensions involving Iran, when investors used Hyperliquid after traditional markets closed.
Silver trading on Hyperliquid at one point represented roughly 2% of CME silver volume, he said.
Ndinga argued the platform reflects demand for 24/7 financial infrastructure that traditional exchanges cannot currently provide.
The competition: The Hyperliquid ETF market is already getting crowded.
Bitwise launched a competing Hyperliquid product days after 21Shares entered the market.
Ndinga said 21Shares differentiates itself through its experience managing staking-enabled exchange-traded products.
He said the firm relies on third-party staking providers rather than in-house infrastructure, arguing that approach improves transparency and reduces potential conflicts of interest.
Ndinga said investors evaluating competing products should focus on custody, staking uptime and operational track records.
Reading between the lines: Hyperliquid’s growth is attracting attention from traditional finance circles.
Ndinga described Hyperliquid as “beyond a crypto story,” calling it a broader financial innovation story.
He said traders increasingly view the platform as a way to gauge market sentiment across multiple asset classes.
Ndinga cited pre-IPO token activity tied to AI chipmaker Cerebras as an example of traders using Hyperliquid to assess demand before public listings.
He added that traditional finance professionals increasingly recognize the value of always-on trading infrastructure.
The complication: Regulatory uncertainty remains one of the biggest risks for Hyperliquid.
Hyperliquid is not available to U.S. users directly, though investors can gain exposure through ETFs tied to the HYPE token.
Ndinga said Hyperliquid restricts access in certain jurisdictions to comply with local laws and sanctions requirements.
He identified regulatory scrutiny and rising competition from rival trading platforms as the main bear-case risks for the ecosystem.
Ndinga said proposed U.S. crypto legislation, including the Clarity Act, could eventually provide clearer rules for decentralized trading platforms.