Grayscale Proposes HYPE ETF – Key Insights

Grayscale, a leading asset management firm, is seeking to launch a HYPE exchange-traded fund (ETF) following its recent application with the SEC. This move marks Grayscale’s entry into the growing list of asset managers planning to introduce an HYPE fund.

Key Takeaways

Grayscale has applied to launch the HYPE ETF with the SEC, aiming to list it on NASDAQ under the ticker GHYP.
HYPE is the native token of Hyperliquid, a blockchain designed to improve decentralized finance applications.
The HYPE token has a market cap of $10.23 billion, making it the 10th largest cryptocurrency.
Delaware Trust Company will serve as trustee for the HYPE ETF, with other prominent firms providing additional services.
The price of HYPE currently sits at $39.44, with predictions of potential growth to $88.34 by year-end.

HYPE

Overview of the Grayscale HYPE ETF

On March 20, Grayscale submitted an S-1 registration form for the Grayscale HYPE ETF to the United States Securities and Exchange Commission (SEC). The fund is expected to be listed on the NASDAQ exchange under the ticker symbol GHYP. HYPE is the native token of Hyperliquid, a layer one blockchain aimed at improving the functionality of decentralized finance (DeFi) applications. One of Hyperliquid's standout features is its facilitation of direct perpetual futures trading, which removes the need for gas fees on transactions.

Launched in 2023, the HYPE token made its market entry in 2024 and has since gained significant traction, boasting a market capitalization of $10.23 billion. This achievement positions HYPE as the 10th largest cryptocurrency according to CoinMarketCap. For the Grayscale HYPE ETF, Delaware Trust Company has been appointed as the trustee, while the Bank of New York Mellon will act as the transfer agent alongside the co-transfer agent Continental Stock Transfer & Trust Company. Coinbase Custody Trust LLC will serve as the custodian for the fund, in line with the practices established for other Grayscale ETFs.

The fund's prospectus suggests that staking may be considered in the future, contingent on meeting certain conditions. Besides Grayscale, other asset managers such as 21Shares and Bitwise are also looking to launch their own HYPE ETFs. It's noteworthy that under Chairman Paul Atkins, the SEC has been approving a range of crypto-related ETFs to align with the pro-crypto agenda of President Donald Trump, which encompasses spot ETFs for assets like XRP, Solana, Dogecoin, Chainlink, Avalanche, and Litecoin.

HYPE Price Analysis

As of this writing, HYPE is trading at $39.44, experiencing a slight decline of 1.18% over the past 24 hours. Nevertheless, it has achieved a remarkable monthly gain of 38.29%, making it a top performer in the crypto space. Analysts from Coincodex project that HYPE could reach a price of $88.34 by the end of the year, indicating a potential increase of 124.11% from current market prices.

HYPE HYPE trading at $39.464 on the daily chart | Source: HYPEUSDT chart on Tradingview.com