Key Highlights
- Grayscale has submitted an S-1 filing to the SEC requesting approval for a spot Hyperliquid ETF, following similar applications from Bitwise and 21Shares
- HYPE posted approximately 21% gains over the past week, with prices hovering between $40 and $43
- HYPE momentarily surpassed Cardano (ADA) in market capitalization, achieving a brief top 10 ranking
- Arthur Hayes, BitMEX co-founder, projects HYPE could reach $150 by August 2026
- The Hyperliquid platform processes approximately $500 million in daily trading activity, allocating 97% of revenue toward HYPE token buybacks
Grayscale Investments has submitted an S-1 registration form to the United States Securities and Exchange Commission seeking authorization for a spot Hyperliquid exchange-traded fund. Should regulators grant approval, the investment vehicle would become available for trading on the Nasdaq exchange using the ticker symbol GHYP, with Coinbase serving as the designated custodian. The company has not yet revealed what management fees it plans to charge.
This submission positions Grayscale in direct competition with Bitwise and 21Shares, who have previously submitted comparable applications. Bitwise initially filed in September before revising its proposal in December to incorporate staking capabilities. 21Shares similarly included provisions for potential staking features in its October submission.
Grayscale has indicated it might incorporate staking functionality into the GHYP offering down the road, although concrete plans remain unannounced. Staking would enable fund participants to generate additional returns beyond capital appreciation from holding HYPE tokens.
Institutional Interest Grows Alongside Price Momentum
The surge in ETF applications coincides with strong market performance for HYPE tokens. The digital asset appreciated roughly 21% throughout the week, establishing a trading corridor between $40 and $43. This upward trajectory temporarily propelled Hyperliquid beyond Cardano (ADA) based on total market valuation, securing a fleeting position among the top ten cryptocurrencies.
Cardano also experienced positive momentum during the same timeframe, with prices approaching $0.29, though the advancement proved insufficient to maintain its market cap ranking. Digital asset analyst Ali Martinez identified a promising technical indicator for ADA, noting that maintaining support above $0.23 could trigger a rally toward $0.32 and potentially $0.37.
Arthur Hayes, who co-founded the BitMEX cryptocurrency exchange, has publicly announced a $150 valuation target for HYPE by August 2026. This forecast suggests roughly a 5x multiplication from previous price levels around $30. Hayes contends that Hyperliquid’s economic structure — which channels approximately 97% of platform earnings into HYPE token repurchases — creates a direct correlation between the token’s worth and actual platform profitability.
Trading Volume Fuels Token Buyback Mechanism
Hyperliquid operates as a decentralized platform specializing in perpetual futures contracts. The exchange processes trading volumes ranging from $40 billion to $100 billion on a weekly basis, establishing it as the dominant platform in its sector based on DeFiLlama metrics.
Daily transaction volumes have peaked near $500 million during recent sessions. The platform continues innovating beyond crypto derivatives, notably working to introduce tokenized S&P 500 trading capabilities.
Multiple challengers including Aster, Lighter, and edgeX entered the market throughout 2025 and have captured modest market share, yet Hyperliquid maintains commanding leadership during most reporting periods.
Combined weekly perpetual futures volume across all decentralized platforms has fluctuated between $125 billion and $300 billion during the current year — representing more than double the transaction levels recorded during the corresponding period twelve months earlier.
HYPE currently trades within the $40–$43 price band following its 21% weekly appreciation.
