Crypto revolution on Wall Street: Bitwise's Avalanche ETF debuts as 21Shares accelerates its Hyperliquid strategy

Bitwise debuts its Avalanche ETF (BAVA) on NYSE Arca, while 21Shares prepares to launch a Hyperliquid fund.

The US stock market expands its openness to digital assets with the start of trading of Bitwise Avalanche ETF under the ticker BAVAThis investment vehicle, which began trading on the platform NYSE ArkThis represents another important step towards the institutionalization of the Avalanche network within traditional portfolios. 

Unlike derivative instruments, this exchange-traded fund (ETF) holds physical tokens in custody, allowing investors to gain direct exposure to the AVAX price in a regulated manner. 

Bitwise's new exchange-traded fund in the US market is part of an ecosystem where asset managers such as Grayscale y vaneck They already manage assets linked to this network worth close to 18 millionAccording to data consulted on the Soso Value platform, this figure demonstrates a sustained interest from capital allocators seeking to diversify beyond leading crypto assets.

BAVA integrates institutional staking incentive

Bitwise has designed this product with an architecture that aims to optimize performance through an integrated staking strategy. According to the launch report, the fund's valuation is governed by the benchmark rate. CME CF Avalanche-Dollar. 

The main appeal of this fund for institutional investors lies in its ability to generate native network rewards. Operating data at the close of its first day shows a gross staking reward rate of 5,4%This translates to a net return of 3,33% for shareholders after deducting operating costs. This additional return transforms the ETF into a productive asset, distinguishing it from funds that simply passively hold the token.

The management of these shares falls to Bitwise Onchain Solutionswhich maintains a staking target of 70% of the trust's total assets. Upon debuting with a base of $2,5 million in net assetsThe fund seeks to scale rapidly through an aggressive fee structure. 

The firm has set a sponsorship fee of 0,34%, but has implemented a full waiver for the first month on the first $500 million raised. This aggressive marketing strategy responds to the need to generate immediate liquidity in an environment where Avalanche already processes significant volumes of transactions for businesses and governments, solidifying its position as a highly efficient, low-latency Layer 1 infrastructure.

Hyperliquid is also seeking its place on the Nasdaq under the name 21Shares

While Avalanche strengthens its presence in the NYSE, the decentralized derivatives protocol Hyperliquid It is preparing its launch on the Nasdaq. 

21Shares has released an update to its Form S-1 before the Securities and Exchange Commission (SEC) to launch the Hyperliquid spot ETF, which would trade under the ticker THYPThe regulatory proposal details a seeding process that has already begun with the acquisition of initial baskets of shares to ensure the fund's operational readiness from the outset. This technical maneuver is common in preparations for cryptocurrency IPOs, ensuring that the market maker has the necessary liquidity to absorb initial buy orders without generating extreme price fluctuations.

The fund proposed by 21Shares also contemplates a dynamic of flexible stakingwith the intention of delegating between 30% and 70% of their holdings to HYPE tokens. Competition for this specific niche is intense, as Bitwise and Grayscale have also filed similar applications, suggesting that Hyperliquid has reached the necessary maturity to be considered an institutional-grade asset. 

With a market price that is around $44 For the HYPE token, the entry of these regulated vehicles could mitigate the inherent volatility of the asset by attracting more stable, long-term capital flows from pension funds or family estates that operate exclusively in supervised markets.

The evolution of the regulated market: From Bitcoin to next-generation altcoins

The trajectory that began in 2024 with the approval of the first Bitcoin exchange-traded funds has led to a diversified offering encompassing multiple layers of the blockchain ecosystem. The regulatory clarity that the SEC has sought to project allows investors today to access a basket of regulated assets that extends far beyond the two industry giants. 

Although Bitcoin y Ethereum They maintain absolute control over assets under management (AUM), the appetite for other protocols such as XRP y Solana has allowed assets with specific value propositions, such as chainlink (LINK), Dogecoin (DOGE), Hedera (HBAR) and Litecoin (LTC), have their own investment instruments on the world's most important stock exchanges.

This optimistic outlook is supported by a custody and settlement infrastructure that has proven its resilience during periods of high volatility. Market analysts agree that the proliferation of these ETFs lowers the barriers to entry for capital that previously feared security risks on unregulated asset exchange platforms. 

As of the date of this publication, the convergence between traditional finance and blockchain technology is a fait accompli, where the distinction between a classic financial asset and a digital token is becoming increasingly blurred for the end investor, who now values ​​transparency and government oversight as indispensable requirements for their participation in the digital ecosystem.