Grayscale has officially introduced a new exchange-traded product (ETP) focused on Hyperliquid (HYPE), boasting the lowest fees among its U.S. competitors, which intensifies the ongoing price competition in the rapidly evolving ETF sector of cryptocurrency.
The Grayscale Hyperliquid Staking ETF (HYPG) debuted on Nasdaq with a sponsor fee of just 0.29%. This fee is lower than those of competing Hyperliquid ETFs from 21Shares and Bitwise, marking a significant development in the emerging market for HYPE investment products.
21Shares launched its Hyperliquid ETF, THYP, on May 12 with a slightly higher expense ratio of 0.30%. Meanwhile, Bitwise introduced its BHYP ETF three days later on the NYSE, initially offering a promotional 0% fee for the first month, which will increase to 0.34% thereafter. Grayscale's 0.29% fee now stands as the most competitive among these three options.
The swift rise of various Hyperliquid funds indicates a surge in investor interest in the HYPE token's underlying protocol. Hyperliquid started as a decentralized perpetual futures exchange but has since evolved into a comprehensive blockchain ecosystem that supports smart contracts, tokenized assets, and novel financial markets.
Unlike conventional crypto ETFs that simply hold an underlying asset, the HYPG is structured to generate additional returns through staking. The fund aims to offer exposure to HYPE while engaging in the protocol's staking activities, allowing investors to benefit from staking rewards. Historically, Grayscale reports that HYPE staking rewards have averaged around 2.2% annually.
This launch comes at a time when Hyperliquid is gaining significant attention within the decentralized finance (DeFi) sector. Grayscale noted that the protocol was responsible for approximately $857 million in revenue during 2025, positioning it as one of the most lucrative applications in the cryptocurrency space.
Investor enthusiasm has largely focused on Hyperliquid's economic framework. Grayscale highlighted that nearly 99% of the fees generated by the protocol are allocated towards token buybacks, a strategy that supporters argue connects network usage directly to the value growth of HYPE.
"The launch of HYPG on Nasdaq reflects our conviction that Hyperliquid represents something genuinely differentiated in the digital asset landscape, a protocol built to support on-chain trading and market activity at scale," stated Krista Lynch, Grayscale's senior vice president of capital markets.
This new fund's introduction signals that institutional investors are increasingly exploring beyond just Bitcoin and Ethereum, seeking out crypto-native infrastructure projects that generate revenue and resemble traditional financial systems. Hyperliquid's advancements in perpetual futures trading, along with its expansion into tokenized assets and other financial offerings, have led some analysts to consider it a vital component for a broader on-chain market infrastructure.