Grayscale aims to introduce leading cryptocurrency trading excitement to your brokerage platform.

The Hyperliquid network has experienced notable expansion, with weekly derivatives trading volume surpassing $50 billion and 24-hour fee revenue amounting to $1.6 million.

What to know:

• Grayscale has submitted an S-1 registration statement for the Grayscale HYPE ETF, which aims to hold HYPE, the native asset of the Hyperliquid network, and pursue a listing on Nasdaq.
• The Hyperliquid network has experienced notable expansion, with weekly derivatives trading volume surpassing $50 billion and 24-hour fee revenue amounting to $1.6 million, establishing it as a leading entity in the market.
• This surge in activity has sparked speculation about a potential increase in HYPE’s price, with Arthur Hayes forecasting it could reach $150, and Grayscale’s trust possibly staking some of its holdings in the future.

Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to establish a new exchange-traded fund for the HYPE token, in light of the burgeoning interest in the decentralized exchange Hyperliquid.

The asset manager’s proposed fund is set to hold the HYPE token and be listed on Nasdaq under the ticker GHYP, as stated in the S-1 registration document.

Grayscale indicated it may stake some of its holdings in the future, although it is currently unable to do so. The filing does not specify a proposed fee. Other asset managers that have filed for HYPE ETFs include Bitwise and 21Shares, which currently manage a HYPE exchange-traded product in Europe with a total expense ratio of 2.5%.

HYPE serves as the native token of the Hyperliquid network, which hosts the premier decentralized exchange of the same name. Its primary layer handles perpetual futures and spot markets, while an additional layer facilitates Ethereum-style smart contracts.

Perpetual futures contracts, commonly referred to as “perps,” are derivative instruments that do not have expiration dates, allowing investors to speculate on an asset’s price without actually owning it. Their indefinite duration (as these contracts do not expire like traditional contracts), high-leverage options, and 24/7 availability have made them particularly popular in the cryptocurrency sector.

The filing arrives as Hyperliquid is witnessing heightened interest from traders investing in traditional financial assets, such as oil and gold, amid ongoing conflicts in the Middle East. The platform has also recently introduced an S&P 500 perpetual contract.

Essentially, the platform’s value proposition extends beyond cryptocurrency trading, offering the capability to speculate on traditional assets at any time, even when most markets are closed.

The trading surge has propelled Hyperliquid’s weekly derivatives trading volume to exceed $50 billion, with over $6.5 billion traded in the past 24 hours alone, according to data from DeFiLlama.

This has enabled the Hyperliquid chain to lead in revenue, which stands at $1.6 million over the last 24 hours, compared to $335,000 for BNB Chain and $192,000 for the Bitcoin blockchain, based on data from Artemis.

Hyperliquid fees in the last 24 hours (Artemis)

This heightened activity has garnered numerous optimistic viewpoints from cryptocurrency investors and market analysts. Recently, Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, indicated that the platform’s robust revenue, genuine trading activity, and controlled token supply could propel its native token, HYPE, to $150.

The token is currently valued at approximately $40 and has increased by 57% this year, while bitcoin has declined nearly 20% and Ethereum’s native token, ether, has dropped around 28%.