“Degeneracy for All”: Bitwise’s Hyperliquid ETF Filing Highlights Risky Frontier as SEC Pumps Brakes
In a move emblematic of crypto’s speculative frontier, Bitwise has filed for an ETF based on Hyperliquid’s HYPE token—a project centered on leveraged perpetual futures trading.
The filing, which venture capitalist Howard Lindzon cheekily endorsed as “degeneracy for all,” seeks to bring a highly specialized and volatile asset to the public markets.
This push into complex products occurs against a backdrop of regulatory caution. The SEC has delayed a batch of more conventional altcoin ETF proposals, including spot funds for Avalanche, Sui, and staked tokens.
The contrast is stark: while innovators race to package niche crypto sectors into ETFs, regulators are applying the brakes, indicating that widespread approval for altcoin-based investment vehicles is not imminent.
