TheBlock
Grayscale has set a 0.29% annual management fee for its upcoming Hyperliquid ETF, positioning itself below competing products from Bitwise and 21Shares in what is shaping up to be a fee war for exposure to the HYPE token.
The move follows a familiar playbook from the spot Bitcoin ETF race, where issuers slashed fees aggressively to capture early AUM. By undercutting rivals at launch, Grayscale is signalling it intends to compete on cost rather than brand premium — a notable shift for a firm that historically charged some of the highest fees in the crypto fund space.
For investors, the fee differential compounds meaningfully over time. A 0.29% expense ratio versus a higher-cost alternative can translate to hundreds of basis points of outperformance over a multi-year holding period, making Grayscale's Hyperliquid ETF the structurally cheaper vehicle for long-term HYPE exposure the moment it opens.
Frequently asked questions
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How does Grayscale's fee compare to Bitwise and 21Shares?
Grayscale's 0.29% annual management fee is lower than the fees charged by competitors Bitwise and 21Shares, which positions it favorably in the emerging fee war.
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What impact does the lower fee have on long-term investors?
The lower 0.29% expense ratio can lead to significant outperformance for long-term investors, potentially resulting in hundreds of basis points of difference over several years compared to higher-cost alternatives.
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