Grayscale Files HYPE ETF Registration as Hyperliquid Gains Momentum

Grayscale has filed a registration statement with the U.S. Securities and Exchange Commission [SEC] for a proposed HYPE ETF.

The filing, submitted via Form S-1 on 20 March, represents an early step toward launching an exchange-traded product tied to HYPE, the native asset associated with the Hyperliquid trading network.

Approval is not guaranteed and remains subject to SEC review.

The move marks a notable shift in institutional strategy, as asset managers begin exploring DeFi infrastructure.

Grayscale, which previously led the push for spot Bitcoin ETFs, is positioning itself early in the next wave of crypto investment products focused on decentralized trading ecosystems.

The filing follows a series of developments around Hyperliquid. This includes the launch of S&P 500 perpetual contracts on the platform and rising total value locked [TVL], reinforcing its growing relevance in on-chain derivatives markets.

Market data suggests that interest in the ecosystem has already translated into price action.

HYPE has climbed sharply in recent sessions, rising from below $30 in early March to trade near $39–$40, marking a strong upward trend ahead of the ETF filing.

The rally reflects growing speculative and institutional attention, with higher highs and sustained buying pressure visible on the daily chart.

However, broader crypto ETF flows paint a more cautious picture.

Data shows:

• Last week: +$146m inflows
• Last month: +$2.29bn inflows
• Last quarter: -$1.62bn net outflows

Notably, recent daily data highlighted -$225.8m in outflows on 19 March, underscoring continued volatility in institutional capital flows.

This divergence suggests that while overall ETF demand remains uneven, capital may be rotating toward new narratives rather than exiting the asset class entirely.

An S-1 filing is the first step in launching an ETF in the United States, outlining the proposed product’s structure, risks, and investment strategy.

While it does not guarantee approval, it signals intent and allows regulators to begin reviewing the offering.

If approved, the HYPE ETF would provide traditional investors with exposure to the Hyperliquid ecosystem without requiring direct interaction with crypto markets.

• Grayscale’s HYPE ETF filing signals early institutional interest in emerging DeFi infrastructure beyond Bitcoin and Ethereum.
• Despite recent outflows in crypto ETFs, HYPE’s price strength suggests capital may be rotating into new narratives rather than leaving the market.