- Grayscale seeks to launch HYPE ETF tracking Hyperliquid token, expanding exposure to DeFi derivatives infrastructure.
- ETF will use standard trust structure with Coinbase custody, offering indirect HYPE access without holding tokens.
- Mixed ETF flows show shifting sentiment, with recent inflows offset by quarterly outflows across crypto products.
Grayscale filed an S-1 registration with the U.S. Securities and Exchange Commission on March 20 to launch a HYPE ETF. The proposed fund aims to track HYPE, the native token of the Hyperliquid network, and list on Nasdaq under “GHYP.” The filing outlines structure, risks, and strategy, marking an early step toward approval.
ETF Filing Targets DeFi Infrastructure
The filing shows Grayscale expanding beyond traditional crypto products into decentralized finance infrastructure. HYPE represents the core asset of Hyperliquid, a blockchain focused on on-chain derivatives trading. The network enables perpetual futures trading without gas fees, which has supported growing adoption.
Additionally, Hyperliquid has introduced S&P 500 perpetual contracts. It has also recorded rising total value locked, indicating increased activity within its ecosystem. These developments appear in the background of the ETF filing.
Meanwhile, other asset managers, including 21Shares and Bitwise, have also explored similar products tied to HYPE.
Structure, Custody And Market Setup
According to the filing, the ETF will operate under a standard trust structure. Delaware Trust Company will act as trustee, while Bank of New York Mellon will serve as transfer agent. Continental Stock Transfer & Trust Company will support co-transfer operations.
Coinbase Custody Trust LLC will hold the underlying assets, consistent with other Grayscale products. The filing also notes a potential future option to include staking, although conditions must first be met.
Furthermore, the ETF would allow investors to gain exposure to HYPE without directly holding the token.
ETF Flows Reflect Mixed Market Activity
However, broader ETF flow data shows uneven institutional activity. Recent data recorded $146 million in inflows last week and $2.29 billion over the past month. In contrast, the last quarter showed net outflows of $1.62 billion.
Notably, March 19 alone recorded $225.8 million in outflows. These figures highlight shifting capital movement within crypto-linked investment products.
The S-1 filing now allows regulators to review the proposed ETF. Approval remains subject to the SEC’s evaluation process.
