Grayscale’s Hyperliquid ETF could begin trading as soon as this week after the asset manager updated its registration filing with a ticker symbol and management fees.
summary
- Grayscale has added a 0.29% fee and the HYPG index to its Hyperliquid ETF portfolio, and Bloomberg analyst James Seyphart expects it to launch as soon as this week.
- The proposed fund would become the third Hyperliquid ETF listed in the US and would charge lower fees than competing products from 21Shares and Bitwise.
Bloomberg Intelligence ETF analyst James Seyphart told
The updated filing shows that the ETF will trade under the HYPG ticker and charge a 0.29% sponsorship fee. If approved, the fund will become the third US-listed ETF tied to Hyperliquid’s native currency, HYPE, joining products already launched by 21Shares and Bitwise.
Competition over fees quickly emerged among issuers targeting the fast-growing hyperliquid market. Grayscale’s proposed fees fall below the 0.30% fee associated with 21Shares’ THYP fund and below Bitwise’s BHYP, which moves to a 0.34% fee after an introductory period.
Grayscale is preparing to enter the growing HYPE ETF market
Interest in regulated hyperliquid products has increased since 21Shares launched THYP and its companion leveraged fund, TXXH, on the Nasdaq in May.
Ditto I mentioned By crypto.news, 21Shares said THYP attracted more than $5 million within days of its launch. Eli Ndinga, head of global research at 21Shares, said at the time that the demand demonstrated investors’ interest in continued access to cryptocurrency-related markets.
Ndinga also argued that Hyperliquid reacted to geopolitical developments before traditional markets reopened, describing the protocol as an essential part of the infrastructure for around-the-clock trading.
HYPE-linked ETFs had accumulated more than $132 million in net inflows by last month. Recent industry data now shows that combined flows into 21Shares and Bitwise products are approaching $140 million.
Grayscale Deposit It indicates that HYPG will follow a similar strategy by staking HYPE holdings to generate protocol rewards along with token price exposure. The company’s previous filings considered staking at a later stage, taking into account regulatory and tax considerations, but the latest release officially identifies the vehicle as the Grayscale Hyperliquid Staking ETF.
Grayscale is also negotiating with Hyper Holdings Global LP on a seed deal involving approximately 2 million HYPE tokens worth approximately $115 million. According to the report, the tokens will be exchanged for ETF shares before the fund begins trading.
The ETF push comes as Hyperliquid continues to expand its presence in cryptocurrency derivatives markets.
Blockchain data shows that the platform now regularly processes more than $170 billion in monthly trading volume across multiple asset classes. Hyperliquid acts as an on-chain perpetual futures exchange where traders can gain exposure to price movements without directly owning the underlying assets.
Demand for HYPE has accelerated along with this growth. The code has arrived Record high Valued at $75.3 on Monday, while its market capitalization rose to nearly $16.7 billion, making it the tenth largest cryptocurrency by market capitalization.
Meanwhile, Grayscale’s planned launch comes during a period of weak demand for the largest classes of crypto ETFs. US-based Bitcoin ETFs recorded net outflows for 10 consecutive trading sessions, losing nearly $3 billion during that period.
Data from the US Ether ETF market also shows a 14-day outflow streak as withdrawals continue to outpace new inflows.
