Bitwise Launches First European ETP for Lighter Token Amid Hyperliquid Rivalry
Bitwise Asset Management has introduced a new exchange-traded product (ETP) on Deutsche Börse Xetra, letting European investors gain exposure to Lighter’s native token, LIT, without holding it directly. The Bitwise Lighter Staking ETP (BLIT) is the first ETP tracking LIT, the token of the decentralized derivatives platform Lighter, positioning it as a competitive alternative to Hyperliquid. Fully backed by LIT stored cold, the product bears a 0.85% annual fee and allows investors to participate via standard brokerage accounts.
Launch of Bitwise Lighter Staking ETP on Xetra
On Wednesday, Bitwise announced the debut of the Bitwise Lighter Staking ETP (BLIT) on Deutsche Börse Xetra. This product is the first exchange-traded product tracking LIT, the native token of decentralized platform Lighter. The ETP is fully backed by LIT tokens held in cold storage. European investors can buy shares via regular brokerage accounts without directly acquiring or managing LIT tokens.
Despite its name, BLIT currently does not generate staking rewards. Bitwise explained that staking will begin once enough assets under management accumulate for the process to be efficient. Until then, the ETP solely tracks the price movements of the token.
Bitwise Expands Lineup of Decentralized Derivatives Tokens
The launch of the Lighter ETP follows Bitwise’s April debut of a Hyperliquid staking ETP in Europe, signaling the firm’s expansion into tokens linked to top decentralized derivatives platforms.
By offering products tracking competing platforms, Bitwise provides investors with accessible vehicles to gain exposure to emerging DeFi derivatives projects without the technical complexities of holding tokens directly.
Lighter: An Ethereum-Based Platform with Zero-Fee Trading
Lighter is a decentralized Ethereum-based exchange focusing on perpetual futures. It employs zero-knowledge proofs to verify trades while allowing users to maintain control over their assets instead of depositing them with a centralized exchange.
One of Lighter’s key features is zero-fee trading for retail customers, part of its strategy to compete against established players like Hyperliquid.
According to CoinGecko data, Lighter recorded nearly $1.8 billion in trading volume over the last 24 hours.
Competition and Expansion Relative to Hyperliquid
In July, Lighter secured a major distribution channel after being integrated into Robinhood Chain, an Ethereum layer-2 network developed by Robinhood. Eligible users of Robinhood Wallet can trade perpetual futures made possible by Lighter’s smart contracts operating on Robinhood Chain.
Hyperliquid remains the dominant competitor, operating its own layer-1 blockchain and controlling over 61% of decentralized perpetual futures trading, per data cited by The Motley Fool.
Hyperliquid has expanded through partnerships, including a May deal with Circle to enhance USDC liquidity and facilitate cross-chain transfers of the stablecoin. Coinbase data indicates Hyperliquid holds approximately $5 billion in USDC.
Why it matters
The launch of Bitwise’s Lighter Staking ETP offers European investors a streamlined vehicle to access emerging decentralized derivatives platforms without the need to hold volatile tokens directly. This development intensifies competition between newcomers like Lighter and established players like Hyperliquid, reflecting broader growth and diversification of investment products in crypto markets. Beyond convenience and accessibility for investors, the move may enhance liquidity and visibility for the Lighter token and marks a meaningful step in the evolution of alternative platforms for decentralized derivatives trading.
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