Key Highlights
- Grayscale has filed its fourth amendment for the Hyperliquid Staking ETF ($HYPG).
- The ETF will give investors indirect exposure to HYPE and may include staking rewards if approved.
- Competition is growing, with Bitwise and 21Shares already launching Hyperliquid ETFs, attracting over $118M in total assets.
Asset management firm Grayscale is moving closer to launching its Hyperliquid staking exchange-traded fund (ETF) after filing a new amendment with the U.S. Securities and Exchange Commission (SEC) for its proposed Grayscale Hype ETF.
According to the latest filing submitted today, this marks the fourth amendment to the proposed ETF, which is expected to trade on Nasdaq under the ticker “HYPG” once it is approved.
How the ETF works
The ETF is designed to give investors exposure to HYPE through traditional stock markets without requiring them to directly hold or manage the token.
According to the filing, the name of the fund was recently changed on May 26, through a Certificate of Amendment filed under the Delaware Statutory Trust Act. It is designed to track the value of HYPE held by the trust per share, including possible staking rewards if staking is approved.
These rewards would increase the amount of HYPE backing each share, though fees and expenses are deducted. The filing clearly notes that shares do not represent direct ownership of HYPE, but instead provide indirect exposure through a regulated investment product.
Grayscale Investments Sponsors, LLC is listed as the sponsor of the trust. CSC Delaware Trust Company will serve as trustee, while The Bank of New York Mellon acts as transfer agent and administrator. Meanwhile, Anchorage Digital Bank N.A. will be responsible for custody of the assets, and West Capital Advisors LLC is expected to provide consulting services connected to the Hyperliquid ecosystem.
Early seed funding amid debut on Nasdaq
The filing has already seen early funding activities. Grayscale reportedly invested $100 on April 22 to create initial seed shares for testing the structure, which is later expected to be redeemed before listing.
The firm has also planned to invest a larger seed of about $500,000, through the purchase of 20,000 shares at $25 each, which will be used to buy HYPE tokens before the ETF goes live on Nasdaq.
Additionally, the filing mentions a possible deal with Hyper Holdings Global LP, a private investment firm, which may acquire shares in exchange for around 2 million HYPE tokens. However, this deal is said to still be in discussion, and may change or may not happen at all, depending on future agreements.
Bitwise and 21Shares heat up HYPE ETF race
If approved, Grayscale will be joining a list of other asset managers that have already launched their Hyperliquid products.
Earlier this month, Bitwise Asset Management launched its Bitwise Hyperliquid ETF (BHYP), which began trading on the New York Stock Exchange on May 15. Similar to Grayscale, the product is designed to give investors simple access to Hyperliquid without needing to directly store or manage tokens.
At the same time, 21Shares has entered the market with its THYP ETF on Nasdaq and a 2x Long HYPE ETF, expanding the range of leveraged and standard exposure products tied to Hyperliquid across regulated exchanges.
According to data from SosoValue, these ETFs have already recorded about $118.97 million in total net assets. In fact, the funds saw about $3.40 million in inflow as of May 27, with Bitwise bringing in around $45.73 million, while 21 shares followed with $45.75 million in funds.
Also Read: U.S. Bitcoin ETFs Bleed $733M as BlackRock IBIT Leads Selling
