Bitwise and Grayscale Compete for Hyperliquid (HYPE) ETF Dominance

Key Takeaways

• Bitwise has introduced BHYP, a HYPE ETF that stakes tokens internally to enhance investor returns
• Grayscale submitted its fourth S-1 amendment for HYPG, a Hyperliquid staking ETF, and secured Nasdaq approval
• A seed capital injection of approximately 2 million HYPE tokens, valued at around $113 million, was included in Grayscale’s latest filing
• Bitwise commits 10% of its management fees toward purchasing HYPE tokens, demonstrating alignment with the Hyperliquid ecosystem
• Potential regulatory challenges persist, especially concerning U.S. regulation of perpetual futures trading venues

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A competitive race has emerged between two prominent cryptocurrency asset management firms seeking to provide investors with access to Hyperliquid, a decentralized trading platform gaining recognition as a robust financial infrastructure solution.

Bitwise has rolled out its HYPE exchange-traded fund trading under BHYP, reporting considerable investor demand following its market debut. Ryan Rasmussen, the company’s head of research, explained that Bitwise conducts token staking internally to generate optimal yields for ETF participants. Additionally, the firm allocates 10% of its management revenue to acquire HYPE tokens for its corporate treasury.

https://twitter.com/Bitwise/status/2059687095350722585?s=20

Transparency is a priority for Bitwise, which publishes its wallet addresses publicly, enabling investors to independently confirm on-chain holdings.

Grayscale Advances Toward Market Entry

Grayscale has submitted its fourth revision to the S-1 registration documentation for its competing HYPE investment vehicle, officially named the Grayscale Hyperliquid Staking ETF. This fund will be available under the ticker HYPG.

[[LINK_START_0]]https://twitter.com/BSCNews/status/2060136032528486764?s=20[[LINK_END_0]]

On May 27, Nasdaq validated receipt of Grayscale’s Form 8-A submission and published formal notification regarding the listing and registration of the security. James Seyffart, a Bloomberg ETF analyst, highlighted the development on social platforms, indicating the product is “definitely getting closer to launch” while noting that fee structures have not yet been finalized.

The most significant update in the recent filing involves seed funding consisting of roughly 2 million HYPE tokens, representing approximately $113 million in value, provided by Hyper Holdings Global LP.

This fund architecture reflects patterns observed in spot Ethereum ETF offerings, where managers have incorporated staking yield into regulated investment vehicles. Grayscale specifies that staking activities will proceed only when the firm determines compliance with applicable securities, tax, and regulatory frameworks.

Bitwise’s Perspective on Hyperliquid’s Trajectory

Rasmussen suggested that [[LINK_START_0]]Hyperliquid[[LINK_END_0]] has potential to emerge as foundational infrastructure for traditional financial operations. He referenced expansion in perpetual futures contracts, prediction markets, and spot trading as evidence of the platform’s development momentum.

He further mentioned tokenized equity offerings, stablecoin integration, and around-the-clock trading capabilities as favorable long-term factors for the platform. A recent collaboration between Coinbase and Hyperliquid focused on USDC liquidity was identified as evidence of increasing institutional participation.

Rasmussen emphasized that 99% of platform fees collected on Hyperliquid are deployed to purchase and permanently remove HYPE tokens from circulation, drawing parallels to corporate share repurchase programs.

Challenges and Uncertainties

Rasmussen recognized that U.S. regulatory scrutiny of perpetual futures markets represents a potential source of regulatory friction. He also identified inflation dynamics, Federal Reserve monetary policy decisions, and international tensions as broader risk factors affecting the cryptocurrency sector.

Centralized exchanges are reportedly encouraging regulatory bodies to examine Hyperliquid more closely as it emerges as a competitor to established platforms.

Rasmussen observed that financial advisors are now focusing discussions on optimal portfolio allocation strategies and tokenization opportunities, moving beyond fundamental debates about cryptocurrency’s lasting relevance.