Key conclusions
- The THYP fund offers direct exposure to the HYPE token including staking rewards, generating $1.8 million in trading volume on its debut.
- Investors received access to the leveraged TXXH product, which offers a double daily rate of return on Hyperliquid assets.
- THYP management costs 0.3% per year, which makes 21shares’ offer the most competitively priced in this segment.
New 21shares offer and staking mechanics in the THYP fund
The structure of THYP is based on the provisions of the 33-Act. This means that this instrument does not have the status of a registered investment fund, which creates specific legal consequences for the purchasers of shares. The most important design element is the integration of staking rewards directly within the fund. The company plans to distribute these profits to investors on a quarterly basis. The payment schedule is set for June 30, September 30 and December 30.
Cost efficiency plays a decisive role here in the fight for capital. The management fee at THYP is just 0.3%. For comparison, its leveraged counterpart TXXH, operating under the 40-Act, charges investors a rate of 1.89%. This difference is due to the different risk structure and the need to reset the leverage in the 2x Long product every day.
Hyperliquid’s dominance and 21shares’ strategic approach
Hyperliquid is currently a powerful force in the decentralized finance sector. The protocol handles a daily volume of over $8 billion, giving it control over over half of the open interest in the entire DEX market. The network’s economic model assumes that over 95% of monthly transaction fees, which reach USD 56 million, fuel daily purchases of HYPE tokens on the open market.
However, investing in THYP presents specific operational challenges. Staking, although it generates additional income, exposes assets to lock-in periods and the so-called slashing. If validators fail to fulfill their obligations, the fund may lose part of the deposited funds. Additionally, THYP shares are valued at the market rate on Nasdaq, rather than pure net asset value (NAV). This means that the market price may differ significantly from the value of the tokens held by the fund.
Risk analysis of leveraged products from 21shares
Andres Valencia points out that Hyperliquid has become a global liquidity center for on-chain derivatives. The project’s tokenomics support this trend, as 76% of the supply goes to the community and the development team’s shares remain locked until 2028. This ensures supply stability during the key growth period of the protocol.
The TXXH Leveraged Product carries risks due to the mathematical nature of leverage. Daily resetting of exposure means that in conditions of high sideways volatility, the value of the fund may decline, even if the HYPE price remains stable in the long term. Investors also do not have the opportunity to physically redeem shares directly in tokens, which distinguishes this ETF from native trading on a decentralized exchange.
The Hyperliquid market attracts attention due to its always-on infrastructure. The use of the ETF format brings these assets into traditional exchange circulation, eliminating the need for institutions to manage crypto portfolios. The funds’ technical documentation indicates the creation dates of May 4 for THYP and April 30 for TXXH, respectively, which confirms the rapid pace of product implementation after obtaining regulatory approvals.
*The information presented in the article does not constitute investment advice.
