Multicoin Capital has reduced its exposure to HYPE, selling nearly 10% of its position this week, according to blockchain analytics platform Arkham. Despite ongoing sales, the firm still holds approximately $90.5 million worth of HYPE, making it its largest on-chain asset.
Significant HYPE Divestment
Over February and March, Multicoin Capital accumulated about 4 million HYPE, reaching its peak allocation. Since then, the company has sold nearly 75% of this position, now retaining just over one-quarter of its peak holdings. The recent reduction further underscores the firm’s strategy to gradually decrease its exposure to HYPE while maintaining a dominant stake.
Multicoin Capital is a crypto investment firm known for early backing of major blockchain protocols and projects across the decentralized finance ecosystem.
Multicoin Capital once amassed nearly 4 million HYPE and has now reduced its position by almost 75%, reflecting a significant divestment while remaining the largest on-chain holder.
Investment in Hyperliquid Ecosystem
In July, the firm made a direct investment in the broader Hyperliquid ecosystem. On July 16, Multicoin Capital invested $1.75 million in Trasia Labs, a perpetual futures platform tailored towards Asian markets and built on Hyperliquid’s infrastructure. Multicoin was the sole investor in this seed round, further strengthening its involvement in the ecosystem despite declining HYPE holdings.
Founded by Kyle Samani and Tushar Jain, Multicoin Capital has a notable presence within the crypto venture capital space. In February, Samani transitioned away from daily operations at Multicoin after nearly a decade, retaining his role as chairman of Forward Industries.
Mini dictionary: Hyperliquid is a decentralized exchange protocol that supports spot and perpetual trading, aiming to provide high liquidity and fast transaction speeds for digital assets. Trasia Labs, built on Hyperliquid, develops infrastructure for derivatives trading, focusing on markets in Asia.
Institutional Access and ETF Inclusion
HYPE has expanded its reach in the U.S. market. The token was recently included in Hashdex’s Nasdaq CME Crypto Index ETF (NCIQ), with a 3.4% allocation, making it the fund’s fifth-largest holding after Bitcoin, Ethereum, XRP, and Solana. This marks the first inclusion of HYPE in a U.S.-listed crypto index ETF, enhancing its visibility among institutional investors.
| Asset | NCIQ ETF Weighting |
|---|---|
| Bitcoin | Largest holding |
| Ethereum | Second largest |
| XRP | Third largest |
| Solana | Fourth largest |
| HYPE | 3.4% (Fifth largest) |
HYPE has also become more accessible to individual investors in the U.S., with Coinbase listing Hyperliquid for spot trading and offering cash-settled HYPE derivatives.
Growing Institutional Interest
Grayscale, a major asset manager in the crypto space, has introduced the Hyperliquid Staking ETF (HYPG), aiming to highlight the economics of the HYPE token and the continued development of the Hyperliquid network. This ETF is part of a broader institutional effort to offer exposure to the token’s staking rewards and the underlying infrastructure’s growth.
With new ETF inclusions and expanded derivatives offerings, HYPE is gaining traction among both institutional and retail investors, particularly following major backing from entities like Multicoin Capital and Grayscale.
