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 be listed on Nasdaq under the ticker GHYP, according to the S-1 registration statement.
Grayscale said it may stake some holdings 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 operates a HYPE exchange-traded product in Europe with a combined expense ratio of 2.5%.
HYPE is the native token of the Hyperliquid network, which is home to the leading decentralized exchange of the same name. Its core layer handles perpetual futures and spot markets, while another layer supports Ethereum-style smart contracts.
Perpetual futures contracts, or “perps,” are derivatives with no expiration dates that allow investors to place bets on an asset’s price without owning it. Their infinite duration (perpetual futures contracts never expire, unlike traditional contracts), high leverage options and 24/7 access have made them extremely popular in the crypto space.
The filing comes as Hyperliquid sees increasing 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.
Simply put, the platform’s value proposition is not only crypto trading, but also the ability to play traditional assets around the clock, even when most markets are closed.
Trading frenzy has seen Hyperliquid’s weekly derivatives trading volume top $50 billion, with more than $6.5 billion traded in the last 24 hours alone, according to DeFiLlama data.
That has helped the Hyperliquid chain dominate in revenue, which stands at $1.6 million over the past 24 hours, compared to $335,000 for the BNB Chain and $192,000 for the Bitcoin blockchain, according to Artemis data.
This increased activity has caught many bullish takes from crypto investors and market watchers. 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 bring its initial token, HYPE, to $150.
The token currently trades around $40 and is up 57% this year, while bitcoin is down around 20% and Ethereum’s native token, ether, is down around 28%.
