HYPE Token Seeks SEC Approval as Hyperliquid's Decentralized Exchange Gains Traction

Hyperliquid, a decentralized exchange built on its own custom Layer 1 blockchain, has gained significant traction in the crypto market. The platform's perpetual futures trading capabilities have attracted a large user base, with over $5.22 billion in total value locked and over 70% of the entire decentralised perpetuals market by open interest as of early 2026.

The HYPE token, launched via an airdrop to more than 90,000 early users of the platform, has seen significant growth with a market capitalization of approximately $10 billion and a price increase of around 200% over the past 12 months. The unique fee structure of Hyperliquid, where 97% of trading fees flow into an Assistance Fund that buys back and burns HYPE tokens, creates a direct mechanical link between trading volume and token scarcity.

The SEC is currently reviewing four separate asset managers' filings for ETFs tied to the HYPE token. If approved, it would be the first spot ETF in the US tied to a DeFi-native decentralized exchange token, establishing that the SEC is willing to extend regulated access to DeFi infrastructure tokens. This could open the door for a wider pipeline of protocol-native ETFs.