Grayscale submitted an S-1 registration statement to the SEC on March 20 to list the Grayscale HYPE ETF on Nasdaq under the ticker GHYP. The fund would directly track the price of HYPE, the native token of Hyperliquid, a Layer 1 blockchain built specifically for decentralized perpetual futures trading. Coinbase Custody is named as the custodian.
The filing makes Grayscale the third major issuer to pursue a HYPE ETF, after Bitwise filed its S-1 in September and 21Shares followed in October. HYPE trades at $39.59 with a market cap of $9.4 billion, as of March 21, 2026, ranking it 14th by market cap on CoinGecko.
Three Issuers, One DeFi Token
The S-1 is the first step in the U.S. ETF approval process. It outlines the fund structure, risks, and investment strategy but does not guarantee that the SEC will approve the product for trading. A 19b-4 rule change filing from Nasdaq would also need to follow for the ETF to actually list.
What stands out is the speed at which institutional issuers have converged on HYPE. Six months ago, Hyperliquid was primarily known to DeFi traders running leveraged perpetual futures positions. Now three of the largest crypto ETF issuers in the U.S. are competing to package it for traditional brokerage accounts.
The fund structure mirrors the template Grayscale has used for its Bitcoin and Ethereum products. CSC Delaware Trust Company serves as trustee, The Bank of New York Mellon handles transfer agent and administration duties, and Coinbase acts as both prime broker and custodian. Grayscale did not disclose a management fee in the filing.
Staking Is Off, but the Door Is Open
One detail in the S-1 worth watching: HYPE staking is explicitly prohibited in the current structure. Grayscale included a "Staking Condition" clause that could allow staking rewards to be incorporated later, pending regulatory clarity. If activated, GHYP holders would earn yield on top of price exposure to HYPE.
This mirrors the approach Grayscale has taken with its Ethereum ETF, where staking remains excluded pending SEC guidance. The inclusion of a conditional staking provision suggests Grayscale expects the regulatory environment to eventually permit yield-bearing crypto ETFs, but is not willing to delay the filing while waiting.
For HYPE specifically, staking secures the Hyperliquid L1 through a delegated proof-of-stake mechanism. Validators earn protocol fees and inflation rewards. Excluding staking from the ETF means early investors would miss out on that yield, estimated in the single-digit percentage range annually, but it removes a regulatory objection that has stalled other products.
Why Hyperliquid Attracted Three Filings
Hyperliquid has grown without venture capital funding, a rarity for a protocol of its size. The platform reached 1.4 million users, $6 billion in total value locked, and a peak daily trading volume of $32 billion. Monthly volume in recent periods has exceeded $258 billion, making it the largest perpetual futures DEX by a wide margin.
The protocol's revenue generation is what likely caught institutional attention. Peak daily protocol revenue hit $20 million, roughly six times higher than 2024 levels. Unlike many DeFi protocols that subsidize activity with token emissions, Hyperliquid generates real fees from real trading volume.
HYPE itself has a circulating supply of approximately 240 million tokens out of a fully diluted supply that puts the FDV at $38.1 billion. The gap between market cap and FDV indicates significant future token unlocks, which the S-1 risk disclosures presumably address.
Hyperliquid is currently unavailable to U.S. users directly. An ETF would give American investors price exposure without needing to access the protocol, sidestepping the geo-restriction entirely. The protocol maintains a policy office in Washington, D.C., signaling it takes U.S. regulatory engagement seriously even while blocking U.S. IP addresses from its frontend.
What Comes Next
The S-1 filing starts the SEC review clock. The commission can request amendments, ask questions, or let the filing proceed. Simultaneously, Nasdaq would need to file a 19b-4 rule change proposal, which triggers a formal comment period and a deadline for the SEC to approve or deny.
Given the current political environment, where the SEC under Chair Paul Atkins has signaled a more accommodating stance toward crypto products, the filings face a more receptive backdrop than they would have two years ago. The SEC has already approved tokenized stock trading on Nasdaq and is processing multiple altcoin ETF applications.
Three competing issuers filing for the same DeFi-native token within six months indicates a broader thesis: the ETF industry believes the next wave of crypto products will move beyond Bitcoin and Ethereum into protocol-specific tokens with measurable revenue and usage metrics. Hyperliquid fits that profile better than most.
BTC traded at $70,703 and ETH at $2,158 at the time of writing, with the broader market Fear & Greed Index at 32 (Fear), as of March 21, 2026.
Overview
Grayscale filed an S-1 with the SEC to list a HYPE ETF on Nasdaq under ticker GHYP, with Coinbase as custodian. The fund would track the price of Hyperliquid's native token, which has a $9.4 billion market cap. Staking is excluded initially but a conditional clause leaves the door open. Bitwise and 21Shares filed earlier, making this the third competing application for the same DeFi perpetual futures token. The SEC review process is underway under a more crypto-friendly administration.
