Grayscale Investments, the world’s largest digital asset-focused investment platform with $35 billion in AUM, has filed its Third Amended S-1 Registration Statement with the U.S. Securities and Exchange Commission (SEC) for its proposed Hyperliquid ETF. If approved, the product is expected to trade on U.S. exchanges under the ticker symbol “GHYP.”
Grayscale takes the lead with HYPE ETF
Grayscale’s latest amendment is now the third major update submitted to regulators for the proposed Hyperliquid ETF, according to Bloomberg ETF analyst James Seyffart.
“Grayscale has filed another Hyperliquid ETF filing! This is Amendment #3,” Seyffart said.
He noted that the increasing number of filings strongly suggests that discussions between issuers and the SEC are active.
Seyffart also said that as Wall Street firms continue to race into the new cryptocurrency sector, U.S. exchanges could eventually see multiple HYPE ETFs competing for investor demand.
This application comes amid a surge in interest in Hyperliquid this year. Hyperliquid has recently become one of the fastest-growing trading ecosystems in cryptocurrency, generating strong revenue growth and its HYPE token briefly neared its all-time high, surpassing $62 earlier this month.
Added staking rewards with ETF submission
One of the biggest changes in this amendment is the integration of staking.
According to the filing, the ETF allows investors to indirectly earn staking rewards generated from HYPE tokens held by the trust. This means that the product is potentially exposed to both HYPE price fluctuations and blockchain staking yields.
However, Grayscale stated that staking capabilities will still be subject to regulatory approval and tax compliance requirements. The filing also stated that the ETF could eventually be renamed the “Grayscale Hyperliquid Stake ETF” if approved for listing on Nasdaq.
Wall Street’s interest in HYPE continues to grow.
The HYPE ETF race is now attracting the attention of more and more institutions. As demand for altcoin ETFs continues to grow following the success of the spot Bitcoin ETF, several companies, including Bitwise and 21Shares, have already expanded their efforts with Hyperliquid-related products.
The latest filing also confirms that Anchorage Digital will serve as custodian for the ETF’s HYPE holdings, replacing Coinbase Custody in the previous filing.
Meanwhile, HYPE itself has recently faced short-term pressure alongside the broader cryptocurrency market. The token has fallen about 6% in the last 24 hours and is trading at around $55, giving Hyperliquid a market value of around $14 billion.
Nonetheless, Seyffart believes that the increased competition among ETFs shows that Wall Street is increasingly seeing Hyperliquid as one of the next major institutional trading opportunities in cryptocurrencies, beyond Bitcoin and Ethereum.
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