Grayscale Switches HYPE ETF Custody to Anchorage Digital

Grayscale has announced a significant shift in its HYPE ETF custody arrangement, replacing Coinbase with Anchorage Digital. This decision was motivated by concerns over competition, concentration, and regulatory compliance.

Anchorage Digital's federally chartered status as the only US-based crypto bank sets it apart from Coinbase's state-regulated status. The change is also seen as a move to reduce risk, echoing BlackRock's recent choice of Anchorage as its secondary custodian for Bitcoin and Ethereum trusts.

Grayscale's decision to opt for Anchorage Digital's institutional staking services aligns with the company's plans to offer staking rewards for the ETF product, pending regulatory approval. This move is likely to have significant implications for the HYPE token, which has suffered a minor 0.23% pullback amid heightened sell pressure.