According to reports from The Block, Grayscale has officially launched its Hyperliquid Staking ETF with a 0.29% annual fee, undercutting competitors 21Shares and Bitwise. The fund launched under the ticker HYPG and represents a significant milestone in the Hyperliquid ETF market. The asset manager disclosed the fee and ticker in an amended S-1 registration statement filed with the US Securities and Exchange Commission on June 1, with Bloomberg Intelligence ETF Analyst James Seyffart indicating he was anticipating the fund launch this week. As reported by The Block, Grayscale has submitted its sixth amendment for the Hyperliquid Staking ETF to the SEC, with the filing including critical information on the fee structure for the ETF. The latest filing removes an earlier contribution structure that appeared in previous versions, though the company has not explained the removal during the ongoing SEC review process.
The new Grayscale ETF launches with a 0.29% fee structure, positioning it as the most competitive offering in the Hyperliquid ETF market. This pricing undercuts 21Shares' 0.30% fee and Bitwise's 0.34% fee, giving Grayscale a significant competitive advantage in attracting early HYPE ETF assets. The Hyperliquid platform operates as a decentralized derivatives exchange enabling onchain trading of perpetual futures, with its native token HYPE ranking as the tenth largest with a market cap of $16.1 billion according to The Block's price data. The lower fee structure provides Grayscale with a strategic advantage as issuers compete for market share in the rapidly growing Hyperliquid ETF segment. However, questions remain regarding the cost of activity related to staking in the fund, with analysts noting that staking fees are often more significant than management fees. The filing does not disclose a management fee, whether the trust intends to stake its holdings, or any fee waiver arrangements, leaving these key details undisclosed during the SEC review process.
According to The Block, last week the Commodity Futures Trading Commission opened the door for perpetual futures contracts, allowing crypto and prediction market heavyweights like Coinbase and Kalshi to launch related products for the first time in the United States. Perpetuals are futures contracts without expiration dates that allow users to bet on asset price movements without direct ownership. These derivatives have become increasingly popular in crypto trading and have attracted record numbers as of last month, with over $132 million in cumulative net inflows to HYPE funds. The regulatory approval has intensified competition among issuers racing to win investor flows in the U.S. market. Grayscale joins a growing race for crypto ETF approvals as asset managers seek regulatory approval for funds tied to digital assets beyond Bitcoin and Ethereum, with recent activity extending beyond Grayscale as VanEck launched a spot BNB ETF under the ticker VBNB last week.
According to crypto.news, 21Shares launched its Hyperliquid ETF on Nasdaq on May 12 under the ticker THYP, with the firm also launching a 2x leveraged version under TXXH. As reported by crypto.news, 21Shares said THYP pulled in more than $5 million within days of its debut. Eli Ndinga, global head of research at 21Shares, noted that the early demand showed investor interest in round-the-clock access to crypto-linked markets, arguing that Hyperliquid priced the Iran shock 48 hours before traditional venues while CME markets were closed. The protocol is described as an important 24/7 infrastructure for traders and investors.
The launched fund becomes the third U.S.-listed Hyperliquid ETF, following products from 21Shares and Bitwise. Grayscale's 0.29% fee structure provides a significant competitive advantage as issuers compete for early HYPE ETF assets. Hyperliquid operates as a decentralized derivatives exchange where users trade on-chain perpetual futures, with its native token HYPE having a market value of about $16.1 billion and ranking as the tenth-largest crypto asset by market cap. The segment is becoming increasingly important in crypto derivatives, with regulators taking a more active role in the market and institutional demand for Hyperliquid ETFs climbing rapidly. The Grayscale filing still mentions about 2 million HYPE tokens as seed capital for the planned exchange-traded fund, estimated at approximately $144 million per current HYPE price trends. Meanwhile, Grayscale prepares to launch its proposed BNB ETF with the trust's shares designed to track the value of BNB held by the fund, with BitGo serving as custodian and BNY Mellon as administrator and transfer agent.
