Institutional Investors Get Regulated Access to DeFi’s Fastest-Growing Force

Institutional investors now have their first regulated exposure to Hyperliquid’s native token through the newly launched 21Shares Hyperliquid ETP, listed on the SIX Swiss Exchange. This European-listed crypto ETP allows investors to gain access to the HYPE token without the need for onchain custody or digital wallets, marking a key milestone in the institutional adoption of decentralized finance (DeFi) assets [2]. The product was announced just days after the HYPE token reached an all-time high of $50.99, signaling strong investor interest in the platform [2].

Hyperliquid, a decentralized exchange for perpetual futures built on a proprietary layer-1 blockchain, has seen rapid growth since its late 2022 launch. The platform processes more than $8 billion in daily trading volume and has facilitated $2 trillion in trades to date, capturing approximately 80% of decentralized perpetuals activity [2]. Its traditional onchain order book model enables faster trade execution compared to platforms reliant on automated market makers. This infrastructure allows trades to be cleared in under one second, with no reliance on external oracles or off-chain systems [2]. In July, Hyperliquid recorded a monthly trading volume of $319 billion, the highest ever for a DeFi perpetuals platform [2].

The financial model of Hyperliquid is also drawing attention, with over 95% of its revenue—primarily from trading fees—allocated to daily buybacks of the HYPE token. As of the latest reports, the platform has repurchased more than $1 billion worth of tokens, enhancing token demand and long-term stability [1]. The platform’s strong financials include monthly revenues exceeding $56 million, achieved without reliance on venture capital funding. Over 76% of the token supply was distributed to the community, and team tokens remain locked until 2028, reducing early sell pressure and supporting long-term value creation [1].

Hyperliquid’s architecture includes a high-speed blockchain known as the Hyperliquid Chain and a custom-built HyperEVM system, allowing developers to build applications beyond spot and perpetual trading [1]. This vertical expansion positions Hyperliquid not only as a derivatives exchange but as a broader financial operating system, consolidating functions like token issuance, liquidity provision, and app development onto a single chain [1]. The platform has also partnered with Phantom, a leading crypto wallet, enabling mobile users to access advanced trading tools [1].

Optimism about Hyperliquid’s future is growing, particularly as it continues to outperform competitors in volume and user adoption. In July 2025, the platform surpassed 600,000 registered users and captured 35% of blockchain-derived revenue for the month [2]. While a brief 37-minute outage in July led to $2 million in trader reimbursements, the swift response was praised by the community [2]. However, recent concerns emerged when four large traders were suspected of manipulating the XPL token on the Plasma platform, highlighting ongoing challenges in ensuring market integrity [2].

Despite such incidents, long-term projections remain bullish. At the WebX 2025 conference, Arthur Hayes, co-founder of BitMEX, predicted a 126-fold increase in HYPE’s value over the next three years, citing the platform’s strong fee revenue and expanding stablecoin adoption [2].

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