Grayscale’s Play for HYPE Heats Up
Grayscale has filed an S-1 registration statement with the U.S. Securities and Exchange Commission to launch a spot ETF tracking the HYPE token, the native asset of the Hyperliquid decentralized exchange. If approved, the Grayscale HYPE ETF would trade under the ticker GHYP on Nasdaq, giving traditional brokerage account holders direct exposure to one of crypto’s fastest-growing onchain tokens. The move comes as HYPE climbs to become the 14th largest cryptocurrency by market capitalization, with a price just above $40 and a year-to-date gain of 56%.
The filing landed on Friday, marking Grayscale’s latest attempt to expand its digital asset ETF lineup beyond bitcoin and ether. While Grayscale has not yet disclosed a management fee for GHYP, it did name Coinbase as custodian for the proposed fund. This mirrors moves by Bitwise and 21Shares, both of which have also filed for HYPE ETFs in recent months—21Shares already operates a European HYPE product with a 2.5% total expense ratio.
Bitwise amended its September ETF filing in December to include staking, reflecting evolving strategies among issuers.
Hyperliquid Volumes Eclipse Rivals
Hyperliquid’s decentralized exchange is now setting industry benchmarks for trading activity. Over the past week, derivatives trading volume on Hyperliquid surpassed $50 billion, with more than $6.5 billion traded in just 24 hours, according to DeFiLlama data cited in multiple filings. For comparison, BNB Chain generated $335,000 in revenue over the same period while Bitcoin’s blockchain saw $192,000—far less than Hyperliquid’s $1.6 million daily chain revenue.
This surge in activity has been partially attributed to geopolitical tensions; commodity trading on Hyperliquid spiked after the US and Israel attacked Iran, drawing new attention to decentralized platforms that can offer global access and fast settlement.
On paper, Bitcoin remains flat—trading at $70,943 over seven days—but HYPE has outperformed nearly every major token this week.
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Bitwise, 21Shares Crowd HYPE Arena
Grayscale is not alone in its pursuit of a U.S.-listed HYPE ETF. Bitwise filed its own application in September and amended it in December to include staking options, while 21Shares considered staking in its October submission. In Europe, 21Shares’ existing product gives investors exposure but charges a notably higher fee than most U.S.-listed crypto funds at 2.5% per year.
Despite this competition, Grayscale’s filing stands out due to its timing and potential impact: Not only does it coincide with record-breaking volumes on Hyperliquid, but it also arrives as institutional interest in onchain derivatives grows rapidly.
Staking Plans Still on Ice
While staking is often touted as an additional yield source for token holders, Grayscale’s S-1 makes clear that the firm does not currently plan to incorporate staking into its HYPE ETF—though it may consider doing so later. Bitwise and 21Shares have both explored staking as part of their respective filings but have yet to receive regulatory approval for those features.
It remains uncertain whether future amendments will allow U.S.-listed ETFs like GHYP to participate directly in network staking or if regulatory hurdles will keep such strategies sidelined for now.
GHYP to Track Onchain Giants
The proposed Grayscale fund would track performance of HYPE—the governance and utility token powering Hyperliquid’s perpetuals DEX (decentralized exchange). With weekly trading volumes fluctuating between $40 billion and $100 billion and single-day surges exceeding $6.5 billion, Hyperliquid now ranks as the most active perps futures platform by volume.
According to coindesk.com, two days after launching a new S&P 500 derivative contract on Hyperliquid, Trade[XYZ] saw that market reach $100 million in daily trading volume—making it one of the ten largest markets on any blockchain at debut.
As traditional finance looks for new ways to bridge into crypto-native infrastructure like Hyperliquid, much depends on how regulators respond—and whether investor demand can sustain these record-setting volumes beyond periods of volatility.
What may drive the next phase
If the SEC approves Grayscale’s S-1 registration for the Hyperliquid ETF, which would trade on Nasdaq under the ticker GHYP, it would immediately enable U.S. brokerage account access to HYPE, but the timing and outcome of the SEC’s decision remain unclear.