Grayscale to Launch Cheapest Hyperliquid ETF with Staking Support

Grayscale is entering the Hyperliquid race with its HYPG ETF, featuring a market-low 0.29% fee and potential staking rewards for institutional investors.

According to recent filings with the U.S. Securities and Exchange Commission (SEC), Grayscale is preparing to launch its own fund under the ticker HYPG. With a sponsor fee of 0.29%, it is set to become the most affordable Hyperliquid ETF available to institutional investors.

This move follows just weeks after 21Shares and Bitwise debuted their own exchange-traded products based on HYPE—the native token of one of the fastest-growing decentralized derivatives platforms in the crypto industry.

Grayscale Enters with Aggressive Pricing

By setting a 0.29% fee, Grayscale is directly undercutting its primary competitors. The 21Shares ETF launched with a 0.30% annual fee, while Bitwise offers a standard 0.34% fee, though the latter temporarily waived its fee for the first month following the product’s debut.

This strategy mirrors the fierce competition seen among spot Bitcoin ETFs in early 2024, where issuers used aggressive price cuts to capture market share in the opening days of trading.

The focus this time is Hyperliquid—a project that has rapidly emerged as a major winner in the current market cycle. Its dominance in decentralized derivatives has propelled the HYPE token to a market capitalization exceeding $18.5 billion, making it one of the largest digital assets in the space.

Staking Could Be the Decisive Edge

The most compelling aspect of Grayscale’s strategy may not be the low fees, but rather its approach to yield.

In its updated prospectus, the company revealed that the fund will have the right to offer staking for its HYPE token holdings, pending final regulatory approval. This would allow the ETF to do more than just track the asset’s price; it could generate additional returns through network validation rewards.

This model is increasingly viewed as the next evolution for the crypto ETF industry. Investors are no longer just looking for price exposure; they are seeking products that can also provide passive income. If authorized, staking capabilities could give Grayscale a significant competitive advantage over other HYPE funds currently on the market.

Growing Institutional Interest in Hyperliquid

Despite recent volatility in the broader crypto markets, interest in Hyperliquid continues to intensify. New products from Bitwise and 21Shares have already attracted over $120 million in net inflows since launch, signaling a robust institutional appetite for the asset.

Wall Street analysts increasingly view Hyperliquid as a pivotal infrastructure player in the future market for tokenized assets. The platform enables 24/7 trading of synthetic instruments, including cryptocurrencies and commodities, without the need for traditional intermediaries. This positions the project as a major alternative to centralized derivatives trading models.

According to Bloomberg Intelligence analyst James Seyffart, the latest amendments to Grayscale’s documentation suggest that the HYPG debut on Nasdaq is imminent and could happen within the coming days. If the launch proves successful, the battle for Hyperliquid ETF dominance will likely become the next major front in the competition for institutional crypto capital.