Grayscale Negotiates $115M HYPE Token Seed Investment for Hyperliquid ETF

Grayscale disclosed in an updated SEC filing that it is negotiating to sell shares in its proposed Hyperliquid ETF in exchange for 2 million HYPE tokens from Hyper Holdings Global LP. As of Thursday, the 2 million HYPE tokens were valued at approximately $115 million. The negotiation represents a potential seed capital investment for the fund. The disclosure follows earlier launches of HYPE-based ETFs by 21Shares and Bitwise Investments this month, which drove the HYPE token to a record high above $60 amid significant investor inflows.

Seed Investment Negotiation Details

Grayscale's filing identifies the potential investor as Hyper Holdings Global LP, an entity with limited public information. Bloomberg Intelligence ETF Analyst James Seyffart highlighted the seed capital mention on social media, questioning the identity of Hyper Holdings Global LP. The proposed transaction would exchange ETF shares for the 2 million HYPE tokens held by the entity. No timeline for completing the negotiation appears in the filing.

Fund Name and Ticker Changes

The SEC filing changes the fund's name from "Grayscale HYPE ETF" to "Grayscale Hyperliquid Staking ETF." The fund will trade on Nasdaq under the ticker HYPG. The name change reflects the fund's staking functionality within the Hyperliquid protocol.

Market Context and Competitor Activity

21Shares and Bitwise Investments launched the first HYPE-based ETFs earlier this month. The HYPE token reached a new record high above $60 following significant inflows into these funds. Bloomberg ETF Senior Analyst Eric Balchunas noted that 21Shares' Hyperliquid fund (THYP) experienced trading volumes reaching approximately eight times its first-day activity, indicating sustained organic interest. Balchunas stated that the THYP Hyperliquid ETF showed volume growth each day since launch, calling it "a really good sign of organic interest."