On Monday, digital asset-focused investment platform Grayscale filed an amendment to its S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), concerning its Grayscale Hyperliquid Staking exchange-traded fund (ETF).
Grayscale to unveil its Hyperliquid ETF this week
According to the amendment, Grayscale will charge a minuscule sponsor fee of 0.29 percent for its HYPE-based ETF. This fee is slightly lower than that charged by rival firms for the same financial product.
Notably, the amendment also included the ticker for Grayscale’s new Hyperliquid ETF – HYPG. It is worth emphasizing that this isn’t the first U.S.-based spot Hyperliquid ETF.
Rival crypto asset management firm Bitwise’s BHYP Hyperliquid ETF had a 0 percent fee for the first month. However, it then started charging a sponsor fee of 0.34 percent. Similarly, 21Shares’ THYP ETF charges a fee of 0.30 percent.
In an X post on Monday, Bloomberg Intelligence ETF analyst, James Seyffart remarked that he expects Grayscale’s HYPG ETF to go-live this week. Seyffart stated:
“Launch likely imminent for Grayscale’s Hyperliquid ETF. When I say imminent, I mean that I am expecting the launch this week.”
For the uninitiated, Hyperliquid is a decentralized, blockchain-based perpetual futures trading platform that allows investors to trade digital assets and commodities. The platform’s native token – HYPE – has seen significant interest over the past few years, currently commanding a market cap of over $16 billion.
Perpetual futures are derivative contracts that allow traders to speculate on an asset’s price without owning it and without a fixed expiration date. To keep the contract price aligned with the spot market, exchanges use a funding rate mechanism that periodically transfers payments between long and short traders.
How are HYPE ETFs faring?
According to data from ETF tracker SoSoValue, U.S.-based spot HYPE ETFs have accumulated more than $132 million in total net inflows to date. The total net assets tied to these ETFs currently stand just above $164 million, representing 1.13 percent of HYPE’s total market cap.
What particularly stands out is that since their launch on May 12, there hasn’t been a single day when HYPE ETFs didn’t close in green territory. The following chart confirms this, with highest inflows recorded on May 29, to the tune of $31.62 million.
Technological advancements in the Hyperliquid protocol, including the implementation of Hyperliquid Improvement Proposal-4 (HIP-4) are expected to further increase the institutional appetite for HYPE.
That said, technical indicators are starting to sound an alarm for the digital asset. On May 21, crypto analyst Ali Martinez stated that overheated RSI points toward the prospect of HYPE dropping all the way down to $40.