Crypto asset management company Grayscale filed the second version of its application for a spot ETF indexed to Hyperliquid’s native token, HYPE, with the US Securities and Exchange Commission on May 11, 2026. The application text updated by the company points to a period when HYPE-based ETF competition has accelerated and institutional investors’ interest in this asset has increased.
Staking option and new details in ETF
The most notable change in the application was the addition of a new section on staking income in the ETF structure. Grayscale states that if the regulatory authority in the USA gives the green light, the fund can earn additional returns through staking from the HYPE tokens it holds. The company also stated that the product may be called “Grayscale Hyperliquid Staking ETF” in the future, and this structure may come to the fore.
The new ETF is designed to offer investors the chance to gain exposure to the HYPE token without directly owning it. In other words, investors will be able to benefit from the return on the real HYPE assets in the fund without intermediaries. This structure is basically similar to the model followed by Ethereum and Bitcoin spot ETFs.
Hyperliquid attack in corporate competition
Grayscale thinks the HYPE-indexed fund is an important step for large investors who want to diversify their crypto portfolios. Hyperliquid, on the other hand, has begun to transform from a decentralized derivatives platform into a digital asset ecosystem that can attract the attention of large institutional investors. According to the company’s own data, as of March 31, 2026, HYPE is among the top ten crypto assets in terms of market capitalization, and its daily trading volume exceeded $230 million.
The operational functioning of the fund is also one of the changes reflected in the application. While Coinbase undertook the custody service in previous revisions, this role passed to Anchorage Digital Bank in the latest update. However, management and transfer agent functions remained with BNY Mellon. These differences point to Grayscale’s efforts to make the product compliant with regulations and corporate standards in the long term.
Competitive products and Hyperliquid interest in the market
Hyperliquid ETF applications are not limited to Grayscale. Global fund managers such as Bitwise and 21Shares have accelerated their application processes for HYPE investment products to be approved. It is noticeable that Hyperliquid has quickly become the focus of corporate narratives in the industry. Many investors think that HYPE-based funds represent a new alternative in portfolio diversification.
These developments show that Hyperliquid is no longer seen as just a niche initiative. While infrastructure preparations continue, especially on Wall Street, large companies predict that the competition on HYPE will intensify in a short time.
In Grayscale’s application, it was stated that “If the staking mechanism is accepted, the potential additional income that the fund will obtain may create a significant advantage for investors.”
Although it is not yet clear whether the new application will be accepted or not, it stands out that Hyperliquid and HYPE token are now rapidly becoming one of the favorite products of institutional investors.
