REX Shares and Tuttle Capital Management have launched the T-REX 2X Long PURR Daily Target ETF (KATT), giving traders leveraged daily exposure to Nasdaq-listed Hyperliquid Strategies. The product adds another bridge between traditional exchange-traded products and digital assets, allowing investors to take a leveraged position on a publicly traded company whose treasury strategy centers on HYPE, the native token of the Hyperliquid blockchain.

The latest expansion of the leveraged ETF market is moving deeper into digital assets. REX Shares and Tuttle Capital Management have launched KATT, a 2X daily leveraged ETF designed to provide 200% of the daily performance of Hyperliquid Strategies Inc. (Nasdaq: PURR).

The product gives traders a regulated exchange-traded vehicle for taking amplified daily exposure to a company whose core strategy is accumulating HYPE, the native token of the Hyperliquid Layer-1 blockchain. REX says KATT is intended as a trading tool rather than a substitute for directly owning PURR shares.

That distinction matters because KATT does not simply provide two times the long-term return of PURR. Its objective resets every trading day. The effects of daily compounding mean that returns over periods longer than one day can diverge substantially from twice the underlying stock’s cumulative performance.

The U.S. Securities and Exchange Commission has previously warned that leveraged and inverse single-stock ETFs can produce significantly different results when held beyond a single day, particularly in volatile markets. The products also lack the diversification of broad-market ETFs because their exposure is concentrated in one underlying security.

For KATT, those risks are layered onto an underlying company whose valuation is closely connected to the digital-asset market.

Hyperliquid Strategies is a digital asset treasury company focused on accumulating HYPE. The company’s latest SEC-filed materials show how quickly that treasury strategy has expanded: it reported 29.4 million HYPE tokens and $133 million in cash and cash equivalents, with no debt, after deploying $773 million to acquire HYPE during the fiscal year ended June 30, 2026.

That is a substantial change from the company’s initial structure described in the launch announcement, which included 12.6 million HYPE tokens and approximately $305 million in cash. The company also stakes HYPE through network validation, creating an additional connection between its equity structure and the economics of the Hyperliquid ecosystem.

The development illustrates an increasingly important theme in Financial Technology and Digital Assets: financial markets are building products that translate blockchain exposure into conventional securities-market formats.

Rather than requiring an investor to acquire HYPE directly, manage blockchain wallets or interact with a decentralized trading venue, a product such as KATT places exposure inside the familiar ETF framework. That can broaden access to crypto-linked strategies for investors who already operate through traditional brokerage accounts.

The model is not unique to digital assets. REX and Tuttle have expanded their T-REX platform to more than 40 leveraged and inverse single-stock ETFs, including products tied to companies such as Nvidia, Robinhood and Tesla. KATT extends that strategy into a company whose primary investment thesis is itself linked to blockchain infrastructure.

That creates an unusual stack of financial exposure: an investor buys an ETF tracking a publicly traded digital-asset treasury company, while that company’s treasury is heavily concentrated in a blockchain token.

The underlying Hyperliquid ecosystem has also become increasingly relevant to institutional market infrastructure. Hyperliquid operates an on-chain derivatives marketplace centered on perpetual contracts, while its HYPE token is used within the network’s broader economic model. Recent developments in regulated U.S. perpetual products have also highlighted the growing competition between traditional exchanges and crypto-native venues.

For the Digital Payments Platforms and Blockchain Financial Technology sectors, KATT is less about payments directly and more about the financialization of blockchain infrastructure. It demonstrates how digital-asset exposure can be packaged through traditional capital-market structures, potentially connecting crypto-native assets with brokers, ETFs and institutional portfolios.

The development also fits a broader expansion of Embedded Finance Platforms and tokenized financial infrastructure. As investors increasingly encounter digital assets through conventional financial products, the boundary between traditional securities and blockchain-based markets becomes less distinct.

However, the product’s risk profile remains significant. A 2X daily fund can experience substantial losses from relatively small moves in the underlying stock. KATT’s disclosure states that if PURR falls by more than 50% in a single trading day, an investor could lose the full principal invested. Daily resetting can also create compounding losses during volatile periods, even if PURR eventually recovers.

The SEC has similarly emphasized that leveraged products are designed around daily objectives and can behave very differently from the underlying security over longer holding periods.

That makes KATT an interesting marker for the evolution of Banking Technology Innovation and Digital Asset infrastructure, but not simply another crypto investment vehicle. Its significance is that blockchain exposure is increasingly being transformed into familiar capital-market products.

For sophisticated traders, the ETF provides another mechanism for expressing a short-term view on PURR and, indirectly, the Hyperliquid ecosystem. For the broader fintech market, it demonstrates how rapidly digital-asset strategies are being integrated into the architecture of traditional financial markets.

Market Landscape

The launch comes as crypto-native financial infrastructure increasingly intersects with regulated capital markets. Hyperliquid has emerged as a major on-chain derivatives venue, while Hyperliquid Strategies has built one of the largest publicly traded HYPE treasury positions. Its latest SEC filing reports 29.4 million HYPE tokens, $133 million in cash and no debt.

At the same time, leveraged ETFs are becoming an increasingly common way to package concentrated exposure to individual companies. The SEC cautions that daily-reset leveraged products can diverge materially from the underlying security’s performance over periods longer than one day, with volatility amplifying that divergence.

KATT therefore sits at the intersection of three trends: single-stock ETFs, digital-asset treasury companies and the migration of blockchain-based financial activity into traditional market structures.

Top Insights

• KATT targets 2X daily PURR exposure: The ETF is designed to deliver twice Hyperliquid Strategies’ daily performance, rather than twice its long-term return.
• Digital assets enter another ETF structure: KATT packages indirect HYPE exposure through a Nasdaq-listed company and conventional exchange-traded investment vehicle.
• Daily compounding is critical: Leveraged ETF performance can diverge sharply from the underlying stock over multiple trading sessions, especially during volatile markets.
• Hyperliquid Strategies has expanded rapidly: SEC filings show 29.4 million HYPE tokens and $133 million in cash and equivalents at fiscal year-end.
• Risk remains highly concentrated: Investors face leverage, single-stock concentration, crypto-market exposure and daily-reset risks simultaneously.

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