Crypto Giant Grayscale Files for Hyperliquid ETF, No Staking Plans For Now

Crypto asset manager Grayscale, known for its extensive lineup of digital assets investment vehicles, has filed an application to launch an exchange-traded fund (ETF) tied to the popular perpetual futures protocol called Hyperliquid. This move comes as part of a growing trend among crypto firms aiming to tap into this lucrative market segment.

Grayscale’s GHYP ETF

The proposed GHYP, which would trade on Nasdaq, is set to track the price movements of Hyperliquid's (HYPE) token. According to Grayscale’s S-1 registration statement filed with the Securities and Exchange Commission (SEC), Coinbase has been named as the custodian for this product.

While no management fee was disclosed in the filing, it highlights that Grayscale is positioning itself at a critical juncture where traditional financial institutions are increasingly integrating crypto assets. The firm’s decision to launch an ETF reflects its broader strategy of aligning with established market structures while maintaining a focus on regulatory compliance.

No Staking Plans for Now, But Future Possibilities Remain

Unlike Bitwise, which has already incorporated staking into their Hyperliquid ETF, Grayscale currently does not plan to include this feature in its GHYP. However, the company left open the possibility of integrating staking rewards at a later date if certain conditions are met.

This strategic decision reflects Grayscale’s cautious approach and emphasis on long-term value creation for investors rather than short-term yield generation through staking mechanisms. The firm believes that by focusing initially on price tracking, they can provide a more stable investment vehicle in the volatile crypto space.

The Hyperliquid Ecosystem: A Growing Market Segment

Hyperliquid’s ecosystem has been gaining traction as it continues to be integrated into various platforms and is increasingly relied upon during traditional market closures. The platform offers 24/7 trading for tokenized real-world assets such as oil, gold, and other commodities.

Data from DeFiLlama indicates that Hyperliquid maintains its position as the most traded perps futures platform with weekly volumes ranging between $40 billion to $100 billion. While some competitors like Aster, Lighter, and edgeX have emerged in recent years, they still fall short of Hyperliquid’s trading volume on a consistent basis.

Despite cooling off from its August highs, the overall perps trading volume has remained robust, hovering between $125 billion to $300 billion weekly. This resilience underscores the growing demand for perpetual futures platforms and their role in providing liquidity during market downturns or closures.