Grayscale has filed an application with the US Securities and Exchange Commission (SEC) to launch a new exchange-traded fund for the HYPE token, amid the growing popularity of decentralized exchange Hyperliquid.
The Crypto asset manager’s proposed fund would hold the HYPE token and list on Nasdaq under the symbol GHYP, according to the S-1 registration statement.
Grayscale said it might acquire some stakes in the future, although it cannot do so now. The filing does not disclose a proposed fee. Other asset managers that have also filed for HYPE ETFs include Bitwise and 21Shares, which already operate a HYPE exchange-traded product in Europe with a total expense ratio of 2.5%.
HYPE is the native token of the Hyperliquid network, which hosts the leading decentralized exchange of the same name. Its central layer handles perpetual futures and spot markets, while a second layer supports Ethereum-style smart contracts.
Perpetual futures contracts, or “delinquents,” are derivative instruments with no expiration date that allow investors to place bets on the price of an asset without owning it. Their infinite duration (perpetual futures contracts never expire, unlike traditional contracts), high-leverage options, and 24-hour access have made them extremely popular in the crypto space.
The filing comes as Hyperliquid sees growing interest from traders betting on traditional financial assets, including oil and gold, as war rages in the Middle East. The platform also recently added an S&P 500 perpetual contract.
In simple terms, the platform’s value proposition is not just cryptocurrency trading, but also the ability to bet on traditional assets 24 hours a day, even when most markets are closed.
The trading frenzy has seen Hyperliquid’s weekly derivatives trading volume surpass $50 billion, with more than $6.5 billion traded in the last 24 hours alone, according to data from DeFiLlama.
That has helped the Hyperliquid chain dominate revenues, which amount to $1.6 million in the last 24 hours, compared to $335,000 for the BNB chain and $192,000 for the Bitcoin blockchain, according to data from Artemis.
This surge in activity has garnered many bullish opinions from cryptocurrency investors and market observers. Recently, Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, said that the platform’s strong revenue, real trading activity, and disciplined token supply could push its native token, HYPE, to $150.
The token is currently trading around $40 and is up 57% this year, while bitcoin is down around 20% and Ethereum’s native token ether is down around 28%.
