As decentralized exchange Hyperliquid grows in popularity, Grayscale has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a new exchange-traded fund for the HYPE token.
According to the S-1 registration statement, Crypto Asset Management’s proposed fund will hold HYPE tokens and be listed on Nasdaq under the ticker GHYP.
Grayscale said it may hold some shares in the future, but it cannot do so now. The document did not disclose the proposed fees. Other asset managers that have also applied for the HYPE ETF include Bitwise and 21Shares, which already operate HYPE exchange-traded products in Europe with a total expense ratio of 2.5%.
HYPE is the native token of the Hyperliquid network, home to the leading decentralized exchange of the same name. Its core layer handles perpetual futures and spot markets, while the second layer supports Ethereum-style smart contracts.
Perpetual futures contracts (PERPS) are derivative instruments with no expiration date that allow investors to bet on the price of an asset without owning it. Their unlimited duration (perpetual futures contracts never expire, unlike traditional contracts), highly leveraged options, and 24/7 access make them very popular in the cryptocurrency space.
The filing comes as Hyperliquid sees growing interest among traders in betting on traditional financial assets such as oil and gold as war rages in the Middle East. The platform also recently added S&P 500 perpetual contracts.
In short, the platform’s value proposition is not just about cryptocurrency trading, but also the ability to bet on traditional assets around the clock, even when most markets are closed.
The trading frenzy has pushed Hyperliquid’s weekly derivatives trading volume past $50 billion, with trading volume exceeding $6.5 billion in the past 24 hours alone, according to DeFiLlama.
This has helped the Hyperliquid chain dominate revenue, with $1.6 million in revenue in the past 24 hours, compared with $335,000 for the BNB chain and $192,000 for the Bitcoin blockchain, according to Artemis data.
This increase in activity has prompted many bullish sentiments from cryptocurrency investors and market observers. Recently, BitMEX co-founder and Maelstrom CIO Arthur Hayes said that the platform’s strong revenue, real trading activity and tight token supply could push its native token HYPE to $150.
The token currently trades around $40 and has gained 57% this year, while Bitcoin is down about 20% and Ethereum’s native token, Ethereum, is down about 28%.
