Grayscale Joins The Race With Hyperliquid ETF Proposal
By: Eva Baxter
Grayscale Investments has taken a significant step towards expanding its cryptocurrency offerings by filing for an exchange-traded fund (ETF) focused on the Hyperliquid token, known by its ticker, HYPE. This move places Grayscale alongside other prominent asset managers like Bitwise and 21Shares, who are also seeking to launch similar products. The application was submitted to the United States Securities and Exchange Commission (SEC) in March 2023, underlining the company's commitment to diversifying its product portfolio.
The proposed Grayscale HYPE ETF aims to provide shareholders with a convenient avenue to gain exposure to the Hyperliquid blockchain's native token. Hyperliquid, a blockchain introduced in 2023, is renowned for its innovative approach to decentralized finance (DeFi), offering direct trading in perpetual futures without the burden of gas fees. The HYPE token debuted in 2024 and quickly gained market traction, achieving a market capitalization of $10.23 billion and ranking as the tenth largest cryptocurrency worldwide. This ETF, if approved, will trade on the NASDAQ exchange under the ticker symbol GHYP.
Grayscale has appointed Delaware Trust Company as the trustee and Bank of New York Mellon alongside Continental Stock Transfer & Trust Company as the transfer agents for the ETF. Coinbase Custody Trust LLC will serve as the custodian of the fund, consistent with the practices applied to other Grayscale ETFs. Although not integrated at launch, Grayscale hints at the future possibility of staking for the HYPE ETF, should certain conditions be satisfied. This development coincides with the SEC's increasing acceptance of cryptocurrency ETFs, which aligns with broader efforts to support a pro-crypto regulatory framework.
Currently, the HYPE token trades at $39.44, after experiencing a slight 1.18% dip over the last day. However, the token has demonstrated robust growth, recording a 38.29% increase over the past month. Analysts predict that HYPE could potentially reach a price of $88.34 by the end of the year, representing a substantial gain of 124.11% from its current valuation. Grayscale's move to include HYPE in its ETF offerings not only highlights the token's promising potential but also the growing interest in diverse crypto assets beyond traditional options like Bitcoin and Ethereum.
