Grayscale, a leading crypto asset management firm, has submitted the second version of its spot ETF application for Hyperliquid’s native token HYPE to the U.S. Securities and Exchange Commission (SEC) as of May 11, 2026. The updated filing signals growing competition in HYPE-based ETFs and a rising wave of institutional investor interest in this digital asset.
Staking feature and new ETF details
The most notable change in Grayscale’s latest filing is the addition of a new section outlining the possibility of staking income within the ETF structure. If U.S. regulators approve, Grayscale states that the fund could generate additional yield by staking the HYPE tokens it holds. The company further noted that the product may eventually be rebranded as “Grayscale Hyperliquid Staking ETF” should this structure be adopted.
This new ETF is designed to provide investors with indirect exposure to the HYPE token, allowing them to benefit from returns generated by actual HYPE assets within the fund, without holding the tokens directly. This structure closely mirrors the model used by Ethereum and Bitcoin spot ETFs, which have become popular vehicles for accessing cryptocurrencies through regulated financial products.
Intensifying institutional competition for Hyperliquid
Grayscale sees its HYPE-indexed fund as a significant step for large investors seeking greater diversity in their crypto portfolios. Hyperliquid itself has begun evolving from a decentralized derivatives platform into a digital asset ecosystem that is attracting major institutional interest. According to the company’s data, as of March 31, 2026, HYPE ranks among the top ten cryptocurrencies by market capitalization, with daily trading volume exceeding $230 million.
Operational aspects of the fund have also shifted in the updated filing. Previously, Coinbase provided custodial services, but the latest version names Anchorage Digital Bank as the new custodian. However, BNY Mellon maintains its roles in management and transfer agency functions. These changes highlight Grayscale’s ongoing efforts to align the product with regulatory compliance and institutional standards over the long term.
Rival products and rising demand for Hyperliquid
Grayscale is not alone in pursuing a Hyperliquid ETF. Global asset managers such as Bitwise and 21Shares have also accelerated their own applications for HYPE-based investment products, seeking regulatory approval. Hyperliquid is rapidly becoming a focal point for institutional narratives in the crypto sector, with many investors viewing HYPE-based funds as a fresh alternative for portfolio diversification.
These developments underscore that Hyperliquid is gaining recognition beyond a niche initiative. As preparations continue on Wall Street, major firms forecast intensifying competition around HYPE in the near future.
Grayscale’s application states, “Should staking mechanisms be approved, the potential extra income generated by the fund could become a significant advantage for investors.”
While the outcome of this latest application remains undecided, Hyperliquid and the HYPE token are moving swiftly toward becoming favorites among institutional investors.
