The U.S. market is ready for its first spot Hyperliquid [HYPE] ETF.
The asset manager 21Shares announced that its HYPE ETF (THYP) would debut today, the 12th of May, on Nasdaq with an annual management fee of 0.30%.
Effectively, the product would allow institutions and broader Wall Street to gain exposure to the booming crypto and tokenized perps segment. The hot sector is currently dominated by Hyperliquid DEX (decentralized exchange).
Last month, Bitwise and Grayscale updated their spot HYPE ETF filing, further indicating that these two products could also hit the market soon. It remains to be seen how Wall Street will react to the altcoin.
Phantom’s Hyperliquid integration hit $20M in revenue
Separately, Hyperliquid’s integration, especially with wallets such as Phantom, has begun to bear fruit. Like Phantom and MetaMask, Rabby also uses Hyperliquid to power its in-wallet perps trading for crypto and commodities.
As part of this arrangement (builder codes), Hyperliquid shares revenue with the wallets. Since the integration last July, Phantom has made $20 million, underscoring the significance of the partnership to Hyperliquid.
The DEX project noted that over 100 teams have added Hyperliquid to power their perps trading. This is a massive scaling operation that has reinforced the DEX dominance in perpetual trading.
Now, it offers crypto perps, commodities, indices, and even prediction markets, setting it apart as a cross-asset trading platform.
The main beneficiary? The native token, HYPE. In fact, crypto research firm Capital Flows noted that the spot ETF will further distinguish HYPE from other tokens.
Hyperliquid has always been focused on creating value as opposed to just getting in front of flows. This will continue to distinguish the protocol from other tokens that are just trying to pump the price at the expense of long-term holders.
Whale interest surges 272%
It’s unclear whether the debut will be a sell-the-news event. But whale accumulation surged 272% in the past seven days, per Nansen data.
Interestingly, supply owned also increased from 47% to 70% in May, underscoring the strong demand for the altcoin despite the price consolidating at $45-$40 since mid-April.
At the same time, exchange supply has also increased by 123%, which could be a surge in demand for staking or potential selling pressure.
Collectively, the ETF debut was deemed positive, but it was unclear whether HYPE would hold above $40 amid the increasing possibility of exchange selling pressure.
Final Summary
- Hyperliquid is set for a major milestone with the first spot ETF in the U.S, which could boost institutional demand for HYPE.
- While whale accumulation and wallet integration showed great demand, the higher exchange supply hinted at potential selling pressure.