Grayscale Files for Hyperliquid Exchange-Traded Fund

Crypto asset manager Grayscale has made a significant move in the financial markets by filing for a spot Hyperliquid exchange-traded fund (ETF). The proposed ETF, which would track the price movement of the HYPE token, is expected to provide investors with exposure to the growing Hyperliquid market.

Grayscale's S-1 registration statement filed with the Securities and Exchange Commission (SEC) on Friday revealed that the company plans to list Coinbase as the custodian for the proposed ETF. However, Grayscale did not disclose a management fee for the product.

The filing comes at a time when Hyperliquid continues to gain traction in the financial markets. The protocol, which offers 24/7 trading for tokenized real-world assets like oil and gold, has seen significant growth in recent months. According to DeFiLlama data, Hyperliquid maintains its position as the most traded perps futures platform with weekly volumes ranging from $40 billion to $100 billion.

Grayscale's decision not to include staking rewards in the initial filing is notable, given that Bitwise and 21Shares have both proposed similar ETFs with staking components. However, Grayscale has left the door open for potential future additions of staking rewards, provided certain conditions are met.