CoinDesk
Grayscale launched the Hyperliquid Staking ETF (HYPG) on Nasdaq Wednesday with a 0.29% sponsor fee, undercutting rival HYPE funds from 21Shares (THYP at 0.30%) and Bitwise (BHYP at 0.34% after its promotional zero-fee first month). HYPG marks the first meaningful fee war in what has become one of crypto's fastest-growing new ETF categories.
Unlike standard crypto ETFs that passively hold an asset, HYPG is designed to generate additional returns through staking — Grayscale cites historical HYPE staking rewards of approximately 2.2% annually, giving investors a yield layer on top of token exposure. Grayscale SVP of Capital Markets Krista Lynch called Hyperliquid "something genuinely differentiated in the digital asset landscape — a protocol built to support onchain trading and market activity at scale."
Why it matters
Hyperliquid generated roughly $857 million in protocol revenue during 2025, placing it among the highest-earning applications in all of crypto. Its economic model routes approximately 99% of fees toward HYPE token buybacks, directly linking network usage to token value accrual — a structure that resonates with institutional allocators trained on equity cash-flow frameworks. The rapid appearance of three competing ETFs within days signals that asset managers view HYPE as a durable institutional category, not a speculative one-off.
Market impact
The fee compression between Grayscale, 21Shares, and Bitwise will likely accelerate AUM consolidation around the lowest-cost wrapper — historically a dynamic that benefits early movers who cut first. HYPG's staking feature adds a differentiation angle beyond price alone, potentially attracting yield-focused allocators who would otherwise park capital in a plain spot ETF.
TheBlock
WuBlockchain