- VanEck’s SEC filing for a HYPE ETF aims to provide regulated exposure to the growing crypto token while incorporating staking rewards for investors.
- Hyperliquid’s surge in price and trading volume has driven VanEck’s decision to introduce a staking-focused ETF tied to the token.
- VanEck is also eyeing the European market for Hyperliquid ETFs, taking advantage of the region’s more flexible regulatory framework.
VanEck, a prominent investment firm, has announced plans to file with the U.S. Securities and Exchange Commission (SEC) for a spot ETF connected to the Hyperliquid token (HYPE). This move comes as the firm aims to provide both retail and institutional investors with regulated exposure to HYPE while offering the added benefit of staking rewards. Additionally, the firm is exploring the launch of two similar ETFs in the European Union, capitalizing on the region’s less restrictive regulatory environment.
The SEC filing follows the growing momentum of Hyperliquid in the crypto market. The token has surged by 20.7% over the past week, reaching a price of $54.45, although it has seen a slight drop of 0.5% in the past 24 hours. HYPE’s trading volume is currently at $543.4 million, reflecting a 54.76% increase, with a market cap of $18.7 billion. This surge is partly due to its expanding decentralized finance (DeFi) footprint, where its fully diluted valuation (FDV) has reached $54.77 billion.
VanEck’s Strategy and the Growing Demand for HYPE
Matt Maximo, senior digital asset analyst at VanEck, highlighted that Hyperliquid’s impressive growth and increasing trading volumes were key factors in the decision to pursue a staking-focused ETF. The ETF will include a portion dedicated to repurchasing HYPE from the open market, further supporting the asset’s value. Kyle Dacruz, director of digital asset products at VanEck, noted that the demand for regulated access to HYPE is rising in the U.S. Consequently, an ETF could offer a reliable way for investors to gain exposure to the token while benefiting from staking rewards.
Currently, HYPE is traded on platforms such as Bitget, KuCoin, and Bybit, though major exchanges like Coinbase and Binance have not yet confirmed listings. The firm’s move into crypto ETFs follows a similar approach it used in launching Ethereum, Solana, and Avalanche ETFs. In 2024, VanEck also introduced staking-based exchange-traded notes in Europe.
Challenges and Opportunities in the U.S. and EU Markets
The SEC has yet to approve any staking-related ETFs, including those linked to Ethereum. The agency is currently reviewing numerous applications, including proposals for Bitcoin, Solana, and Dogecoin ETFs. As a result, VanEck’s filing may face delays, as the SEC updates its regulations for crypto ETFs, reducing the review process timeline from 240 days to approximately 95 days.
Despite these challenges, VanEck is also targeting the European market, where less stringent regulations offer more favorable conditions for such financial products. This strategy mirrors the recent moves of companies like 21Shares, which launched Hyperliquid ETFs in Europe in August. The European expansion could serve as a model for how the U.S. market may evolve.
