Grayscale Investments is reportedly negotiating a seed investment worth approximately $115 million in HYPE tokens for its proposed Hyperliquid staking ETF, signaling deeper integration of decentralized finance into traditional financial markets. The deal would involve swapping about 2 million HYPE tokens for shares in the fund, providing initial capital ahead of a public listing.
The asset manager has revised its earlier filing with the SEC, shifting from a plain spot HYPE ETF to a staking-focused vehicle now branded as the Grayscale Hyperliquid Staking ETF. This updated structure allows the fund to earn protocol rewards from staked tokens, in addition to price appreciation, pending regulatory approval for both the ETF and its staking mechanics.
If approved, the ETF will trade on Nasdaq under the ticker HYPG. The seed investment comes from Hyper Holdings Global LP, a Hyperliquid entity, which will receive ETF shares in exchange for the HYPE tokens. This move positions Grayscale to compete with 21Shares, which recently launched the first US-listed Hyperliquid ETFs, including one with built-in staking rewards.
The HYPE token has shown strong performance, recently reaching an all-time high above $62 and currently trading near $60.99, with a market cap in the tens of billions. The $115 million seed deal represents roughly 12% of the token’s daily trading volume, which could tighten supply and support prices. Analysts note that while the transaction will likely occur over-the-counter, its effect on market dynamics is similar to a large buy order, reducing available supply in the open market.
On-chain activity shows major holders like Galaxy Digital and Loracle actively staking and unstaking large amounts of HYPE, adding to the narrative that ETF issuers are entering a competitive capital environment. The Grayscale ETF’s success hinges on SEC approval, but the firm’s proactive seed talks suggest confidence in the product’s eventual launch. Traders are watching volume levels and price action to gauge whether ETF demand will sustain HYPE’s upward momentum or if speculators will use the news to exit positions.