Asset managers Bitwise and Grayscale are competing to bring Hyperliquid ETFs to market, with staking as the key differentiator in a race that has drawn more than $60 million in inflows.
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Bitwise and Grayscale race to launch HYPE ETFs as staking draws $60 million
Bitwise and Grayscale are racing to launch Hyperliquid ETFs with staking, a competition that has drawn more than $60 million in combined inflows.
"We are seeing strong investor interest in our HYPE ETF products," Ryan Rasmussen, head of research at Bitwise, said. "Hyperliquid could become one of the systems that most of traditional finance runs on in the future."
Bitwise's BHYP, which began trading May 15, reached more than $60 million in assets under management, while 21Shares' THYP, launched May 12, holds about $55 million, according to Bloomberg data. Grayscale filed a third amendment to its HYPE ETF registration with the SEC on Friday, updating the proposed ticker to GHYP, Bloomberg analyst James Seyffart said. The Grayscale trust agreement permits staking of HYPE tokens for yield, subject to regulatory approval.
The competition shows how asset managers are offering differentiated crypto products beyond plain spot exposure. Bitwise stakes HYPE tokens in-house to maximize yield for ETF investors and allocates 10 percent of management fees toward buying HYPE tokens for its own balance sheet, Rasmussen said. The firm also publicly shares wallet addresses tied to its HYPE ETF reserves so investors can verify holdings on-chain.
Hyperliquid, a blockchain optimized for onchain trading, generated $2.9 trillion in trading volume in 2025 and holds roughly 60 percent of global onchain derivatives open interest, Bitwise said. Rasmussen said 99 percent of fees generated on the platform are used to buy and burn HYPE tokens, a mechanism he compared to traditional stock buybacks.
Bitwise differentiates BHYP through in-house staking and a 34 basis point expense ratio, waived for the first month on the first $500 million in assets. 21Shares offers THYP with a 30 basis point expense ratio and also provides a leveraged product, the 21Shares 2x Long HYPE ETF (TXXH).
Rasmussen said wealth managers are increasingly asking about portfolio allocation, tokenization and stablecoins instead of questioning whether crypto will go to zero. He acknowledged that US oversight of perpetual futures markets could create pressure for Hyperliquid and similar platforms, with traditional exchanges reportedly pushing regulators to examine the sector more closely.
HYPE's price pulled back roughly 9 percent over the past 24 hours after climbing above $62 and reaching fresh record highs earlier this week, according to CoinGecko. The token's market capitalization stood above $14.5 billion. Grayscale's potential entry with GHYP could add a third HYPE ETF to the market, further expanding institutional access to the token.
This article is for informational purposes only and does not constitute investment advice.
[1] Bitwise and Grayscale Battle to Launch Hyperliquid (HYPE) ETFs with Staking[2] Bitwise bets Hyperliquid could power future finance as HYPE ETFs gain traction[3] Asset manager Grayscale delays IPO plans as crypto listing boom loses steam[4] Grayscale's Third Hyperliquid ETF Amendment Eyes Staking Edge Over Bitwise,...[5] Crypto ETFs: From Bitcoin to Hyperliquid | ETF Trends
