CoinDesk
Grayscale launched the Grayscale Hyperliquid Staking ETF (HYPG) on Nasdaq on Wednesday with a 0.29% sponsor fee, the lowest among US-listed Hyperliquid products and a direct shot at 21Shares' THYP (0.30%, debuted May 12) and Bitwise's BHYP (promotional 0% for the first month, stepping up to 0.34%). The fund pairs spot HYPE exposure with on-chain staking, which Grayscale frames as historically averaging about 2.2% in annual rewards — a yield layer passive HYPE wrappers can't match.
Why it matters
Three Hyperliquid ETFs inside a month is a pace the category has never seen, and the fee compression is doing the work. 21Shares, Bitwise, and Grayscale all launching within weeks of each other turns HYPE from a single-issuer race into an actual price war — and in crypto ETFs, the issuer that wins the fee line tends to win the flow line, the way IBIT did against the first wave of spot BTC funds. The staking wrapper sharpens the edge: a 2.2% reward lift on top of a 0.29% fee puts HYPG's net economics ahead of a plain HOPE holding for taxable US investors who can't self-custody and stake on Hyperliquid directly.
The story is also a referendum on Hyperliquid itself. Grayscale disclosed the protocol pulled in roughly $857M of revenue in 2025, with about 99% of protocol fees routed to HYPE buybacks — a model that ties network usage directly to token value accrual rather than to a foundation's discretionary treasury moves. That economic design is what makes an institutional wrapper defensible at all: it gives traditional allocators a fundamental reason to hold HYPE beyond a momentum call.
Market impact
Krista Lynch, Grayscale's SVP of capital markets, framed the launch as conviction that Hyperliquid is "something genuinely differentiated" — onchain trading and market infrastructure at scale, not just another perpetual-futures venue. That's the institutional pitch: HYPE is being slotted into the same mental category as the revenue-generating infrastructure plays that drew spot BTC and ETH ETF capital, only with a buyback mechanic and an order-book perp engine underneath.
Frequently asked questions
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What is Grayscale's Hyperliquid Staking ETF (HYPG)?
HYPG is a Nasdaq-listed exchange-traded product from Grayscale that holds the HYPE token and stakes it on-chain. It launched with a 0.29% sponsor fee, the lowest among US-listed Hyperliquid products.
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How does HYPG's fee compare to other Hyperliquid ETFs?
HYPG charges 0.29%. 21Shares' THYP charges 0.30% and Bitwise's BHYP runs a 0% promotional fee for its first month before stepping up to 0.34%. On a normalized basis, Grayscale's fund is the cheapest of the three.
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How does the staking component work in HYPG?
The fund stakes the underlying HYPE on the Hyperliquid network and passes staking rewards to investors. Grayscale said HYPE staking rewards have historically averaged about 2.2% annually, though realized yield will move with network participation.
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Why is Hyperliquid drawing institutional interest?
Grayscale disclosed Hyperliquid generated roughly $857M of revenue in 2025, with about 99% of protocol fees routed to HYPE buybacks. The buyback mechanic ties network usage directly to token value accrual, which institutional allocators read as a fundamental backing beyond momentum.
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What should investors watch after the HYPG launch?
Three things: which fund wins the flow given the 1bp fee edge, AUM disclosures over the first 30 trading days, and the realized staking-reward distribution, since the 2.2% headline is a historical average rather than a guaranteed yield.
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