Grayscale advances bid for HYPE fund

Grayscale Investments has moved a step closer to launching a spot exchange-traded fund tied to Hyperliquid’s HYPE token after submitting a third amended S-1 registration statement to the US Securities and Exchange Commission, sharpening market expectations that regulated access to one of the fastest-growing decentralised trading ecosystems may be nearing approval.

The proposed Grayscale HYPE ETF would trade on Nasdaq under the ticker GHYP if cleared by regulators. The fund is designed as a passive vehicle that would hold HYPE directly, giving investors exposure to the token through a listed securities structure rather than requiring them to buy, custody or trade the asset on crypto platforms.

Bloomberg ETF analyst James Seyffart said the repeated amendments show issuers are continuing to work through the regulatory process, a sign that the application remains active rather than dormant. The filing does not amount to approval, and the SEC can still request further changes, delay a decision or reject the proposal.

Grayscale’s application comes as competition intensifies among asset managers seeking to expand crypto ETF offerings beyond Bitcoin and Ether. Spot Bitcoin ETFs transformed institutional access to digital assets after their US debut, while Ether funds widened the scope of regulated crypto exposure. The next phase is focused on tokens linked to faster-growing blockchain networks, decentralised exchanges and staking-based ecosystems.

Hyperliquid has become a major venue for on-chain perpetual futures trading, a segment that allows traders to take leveraged long or short positions without contract expiry. Its appeal has been driven by high-speed execution, deepening liquidity and continuous market access, features that have helped decentralised derivatives trading attract professional traders and crypto-native funds.

The HYPE token sits at the centre of that ecosystem. It is used within the Hyperliquid network and has gained prominence as activity on the platform has expanded. Market data this week showed HYPE among the larger digital assets by capitalisation, with trading interest boosted by speculation around ETF filings, growing derivatives volumes and wider adoption of decentralised finance infrastructure.

Grayscale’s prospectus describes the trust as a Delaware statutory trust formed in January 2026. Its objective is to reflect the value of HYPE held by the trust, minus expenses and liabilities. The document says the trust would not use leverage, derivatives or active trading strategies. Shares would represent fractional ownership of the trust’s HYPE holdings.

The amended filing also keeps attention on custody arrangements, redemption mechanics and possible staking treatment. Earlier versions of the filing indicated that staking could be considered only under defined conditions. That issue remains sensitive because staking rewards may improve returns but can add operational, tax and regulatory complexity.

The SEC’s approach to crypto ETFs has shifted significantly since the first spot Bitcoin approvals, but smaller and newer digital assets still face stricter scrutiny. Regulators are likely to examine market surveillance, price integrity, token concentration, liquidity, custody safeguards and risks linked to decentralised finance protocols before allowing a HYPE product to trade on a national securities exchange.

A GHYP approval would mark an important test for whether US regulators are prepared to permit ETFs tied to assets outside the most established crypto networks. It would also strengthen Grayscale’s position as it tries to defend market share in a crowded field that now includes major traditional asset managers and specialist crypto issuers.

For investors, the structure would remove some direct handling risks associated with wallets and private keys, but it would not remove exposure to HYPE’s price volatility. The token remains tied to a young market segment where trading volumes, liquidity conditions and network activity can shift sharply. The filing also notes that trust expenses may be paid through sales or transfers of HYPE, which can affect the amount of underlying assets represented by each share.