Asset Manager Bitwise has submitted a proposal to launch exchange-traded funds (ETFs) that would hold and track tokens associated with Crypto Perpetual Futures Protocol and Blockchain Hyperliquid.
The company aims to introduce Bitwise high lipid ETFs, as mentioned in regulatory documents filed on Thursday. These funds are designed to retain high lipids (hype), which can be used for discounted decentralized exchange (DEX) transactions and to cover blockchain fees.
However, the filing does not specify which exchange will host the product, what the trading ticker will be, or the fee structure involved.
Interest in Bitwise’s filing has increased, particularly after Aster launched its token earlier this month. This has led to a significant rise in trading volume and open interest, surpassing levels that were previously the highest in on-chain futures trading.
High liquid ETFs offer physical redemption
According to the filing, Bitwise’s ETF will hold the token directly, aiming to provide exposure to the so-called high lipid value held in trust.
This product will also feature a physical creation and redemption system, allowing investors to exchange fund shares for hype tokens instead of cash.
The SEC allowed for the creation and redemption of cryptocurrency products back in July.
Submitting is the first step before starting
Bitwise’s filing is under Form S-1, which registers ETFs with the SEC as per the Securities Act of 1933. This process permits the product to hold cryptocurrency tokens directly.
Additionally, initiating the ETF requires Form 19b-4 to start the approval journey at the SEC, a process that could take as long as 240 days.
Earlier this month, the SEC approved general listing guidelines for crypto ETFs to expedite the approval process, eliminating the need for individual product evaluations.
Yet, Bitwise noted in its filing that there are currently no high lipid futures contracts registered with the CFTC.
Aster open interest surges, trypter high lipid volume
Aster, a permanent futures DEX native to BNB chains, has experienced a remarkable surge in trading volume, outstripping many competitors.
The exchange has significantly contributed to the DEXs’ permanent trading volume, achieving an all-time high of $70 billion last Thursday. In the past 24 hours alone, trading volume exceeded $35.8 billion, over three times the $10 billion recorded previously during the same timeframe.
According to Coinglass, outstanding profits on Aster tokens reached $1.15 billion, a dramatic increase from under $143 million just a week ago.
Meanwhile, the open interest in The Hype Token saw a decline of 1.85% to $2.2 billion over the last day, as the token’s price slipped 3.5% to $42.50 during that period.
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