Grayscale has submitted a fourth amendment to its proposed Hyperliquid ETF with the U.S. Securities and Exchange Commission. If approved, the fund would be known as Grayscale Hype ETF (HYPG) and would be listed on Nasdaq.
According to the filing, the proposed product would allow investors to gain access to HYPE through regular stock market accounts. It would not involve buyers having to hold, store, or manage the token themselves.
Also Read: Hyperliquid ETF Gains Momentum as Grayscale Files Third SEC Amendment
Hyperliquid ETF Structure Includes Possible Staking Rewards
The fund’s name was changed on May 26 with a Certificate of Amendment pursuant to the Delaware Statutory Trust Act, the filing said. The Hyperliquid ETF would reflect the value of HYPE in the trust per share.
If approved, the structure can also contain staking rewards. After fees and expenses, those rewards could further boost the amount of HYPE that backs each share.
The filing also states that investors would not directly own HYPE through the shares. Rather, the Hyperliquid ETF would offer indirect exposure via a regulated investment product.
Grayscale Investments Sponsors, LLC, is listed as the sponsor of the trust. The transfer agent and administrator will be The Bank of New York Mellon, with CSC Delaware Trust Company as trustee.
Anchorage Digital Bank N.A. is named as the custodian for the assets. It is assumed that West Capital Advisors LLC will be involved in consulting services related to the Hyperliquid ecosystem.
The filing also includes early funding details. On April 22, Grayscale placed a $100 investment to generate the initial seed shares to test the fund structure.
Grayscale Prepares Seed Capital for HYPE Trust
Those seed shares are anticipated to be redeemed prior to the product going to trade. Grayscale is also looking to make a larger seed investment, estimated at around $500,000, prior to the Hyperliquid ETF’s launch.
That bigger seed would require buying 20,000 shares, at $25 a share. The proceeds would then be used to buy HYPE tokens for the trust.
The amendment also mentions a possible transaction with Hyper Holdings Global LP. The private investment firm might buy up shares in return for approximately 2 million HYPE tokens.
However, the filing says that deal remains under discussion. It is subject to change or may not occur in the future, depending on future agreements of the parties.
Hyperliquid ETF would put Grayscale in a fast-growing category of regulated Hyperliquid products if approved. Other asset managers have already introduced similar investment products.
On May 15, Bitwise Asset Management debuted its Bitwise Hyperliquid ETF (BHYP) on the New York Stock Exchange. It is similar to Grayscale’s proposal, as it provides investors with access to Hyperliquid without direct token custody.
The updated amendment indicates Grayscale is still working to set up the fund structure prior to its final approval. The Hyperliquid ETF is still under SEC review.
