Crypto asset management giant Grayscale has taken a significant step toward launching a spot exchange-traded fund (ETF) for HYPE, the native token of the Hyperliquid ecosystem. The company submitted amendment #1 of its S-1 registration statement for the "Grayscale HYPE ETF" to the U.S. Securities and Exchange Commission (SEC).
According to the filing, the ETF aims to provide investors with exposure to HYPE without requiring them to purchase the asset directly. The fund will be established within a Delaware-based trust that will directly hold HYPE tokens, with its share price intended to reflect the value of the underlying holdings. The application notes that staking income could be included in the fund's performance under certain conditions.
If approved by the SEC and meeting Nasdaq listing criteria, the ETF plans to trade on the Nasdaq Stock Market under the ticker symbol "GHYP." The application specifies that ETF shares will be issued continuously and can only be created and redeemed in blocks of 10,000 "baskets" through authorized participants, with transactions executable both in-kind (using HYPE tokens) and in cash. Custody services will be provided by Anchorage Digital Bank, while Bank of New York Mellon will handle transfer and administrative functions.
Concurrently, on-chain data reveals significant institutional activity surrounding HYPE. Leading investment firm Paradigm has unlocked approximately 2.14 million HYPE tokens, valued at roughly $88 million. While this does not constitute an immediate sale, market participants are monitoring the potential for these unlocked assets to enter the market, creating possible selling pressure.
This development follows recent notable wallet activity linked to Multicoin Capital. Previous on-chain analysis suggested Multicoin may have sold a significant amount of Ethereum (ETH) and shifted holdings toward HYPE. Data indicates that known Multicoin addresses and related wallet clusters made approximately $240 million worth of HYPE purchases through Galaxy Digital, while sending around $230 million worth of ETH to the same firm.
