Grayscale launches HYPG Hyperliquid staking ETF on Nasdaq

A new exchange-traded fund offering exposure to the Hyperliquid blockchain's native token began trading on Nasdaq this week, marking the latest entry in a competitive and fast-growing corner of the crypto investment market. The Grayscale Hyperliquid Staking ETF, trading under the ticker HYPG, launched with a sponsor fee of 0.29%, positioning it as the lowest-cost U.S.-listed product of its kind.

The fund provides investors with exposure to the price of the HYPE token while also aiming to capture staking rewards generated through participation in the Hyperliquid network. Grayscale stated that historical annual staking yields for HYPE have been approximately 2.2%. This structure moves beyond traditional spot crypto ETFs by bundling token price exposure with a potential yield component.

HYPG enters a market where two other major funds have recently launched. The Hyperliquid ETF from 21Shares, THYP, carries a fee of 0.30%, while Bitwise's BHYP product started with a zero-fee promotional period before rising to 0.34%. Grayscale's launch intensifies a fee competition among issuers in this emerging product category.

The underlying Hyperliquid platform is a decentralized trading venue...