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 symbol GHYP, according to the S-1 registration statement.
Grayscale said it may hold some stakes in the future, although it cannot do so at this time. The filing does not disclose the proposed fees. Other asset managers who have also filed for a HYPE ETF include Bitwise and 21Shares, which already operate a HYPE exchange-traded product in Europe with a 2.5% total expense ratio.
HYPE is the native token of the Hyperliquide network, which hosts the leading decentralized exchange of the same name. Its main layer manages perpetual futures and spot markets, while a second layer supports Ethereum-style smart contracts.
Perpetual futures, or “perps,” are derivative instruments with no expiration date that allow investors to bet on the price of an asset without owning it. Their infinite duration (perpetual futures 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.
Simply put, the platform’s value proposition is not only cryptocurrency trading, but also the ability to bet on traditional assets around the clock, 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.
This helped the Hyperliquid chain dominate its revenue, which stood at $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 Artemis data.
This increased activity has sparked many bullish opinions from crypto investors and market observers. Recently, Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, said that the platform’s significant revenue, real trading activity, and disciplined token offering could bring its native token, HYPE, to $150.
The token currently trades around $40 and is up 57% this year, while bitcoin is down about 20% and Ethereum’s native token, ether, is down about 28%.
