Bitwise introduces inaugural Lighter ETP as competition with Hyperliquid intensifies
BLIT commences trading on Deutsche Börse Xetra featuring a 0.85% yearly fee, arriving after Bitwise's April debut of its Hyperliquid staking offering.
Bitwise Asset Management has introduced a European exchange-traded product (ETP) that tracks Lighter, providing conventional investors with exposure to one of Hyperliquid's growing competitors while avoiding the need to purchase its native token directly.
The asset manager announced Wednesday that its Bitwise Lighter Staking ETP (BLIT) has begun trading on Deutsche Börse Xetra, representing the inaugural exchange-traded product to track LIT, which serves as the native token for the decentralized derivatives platform Lighter.
LIT tokens held in cold storage provide complete backing for the product, which features a 0.85% annual expense ratio. Investors across Europe can access the ETP via standard brokerage accounts, eliminating the requirement to purchase or maintain direct custody of LIT.
Although the product bears the term "staking" in its name, BLIT currently doesn't produce staking rewards. According to Bitwise, staking functionality will commence after the product accumulates sufficient assets under management to enable efficient processing. In the interim period, the ETP will simply mirror LIT's price movements without producing staking income.
This Lighter offering arrives on the heels of Bitwise's European launch of a Hyperliquid staking ETP in April, representing the firm's ongoing expansion into tokens connected to major decentralized derivatives platforms.
Lighter operates as an Ethereum-based decentralized exchange specializing in perpetual futures contracts, leveraging zero-knowledge proofs for trade verification while enabling users to maintain custody of their assets instead of transferring them to a centralized exchange. Additionally, the platform provides zero-fee trading for retail participants, forming part of its competitive strategy against established decentralized derivatives platforms like Hyperliquid.
According to CoinGecko data, Lighter processed approximately $1.8 billion in trading volume during the previous 24 hours.
Lighter takes on the perp market leader
In July, Lighter secured a significant distribution partnership when Robinhood incorporated the exchange into Robinhood Chain, its Ethereum layer-2 network. Qualified Robinhood Wallet users now have access to perpetual futures trading through Lighter, with transaction settlements processed via Lighter smart contracts operating on Robinhood Chain.
However, Hyperliquid maintains its position as the substantially larger competitor. In contrast to Lighter, which functions as an Ethereum layer-2 solution, Hyperliquid operates on its proprietary layer-1 blockchain. According to data referenced by The Motley Fool, it commanded over 61% of the decentralized perpetual futures trading market, while simultaneously expanding through its own strategic partnerships.
Circle announced an agreement in May aimed at expanding USDC utilization on Hyperliquid, incorporating enhanced liquidity and simplified cross-blockchain transfers of the stablecoin. According to Coinbase, approximately $5 billion in USDC was maintained on Hyperliquid at that time.