Financial powerhouse VanEck has set its sights on a new frontier in digital assets. The company recently filed a proposal with the U.S. securities watchdog for a Hyperliquid (HYPE) exchange-traded fund, or ETF. This isn’t just any ETF; it includes a staking option. The goal is simple: offer everyday and institutional investors a regulated way to tap into the HYPE token and its network rewards.
This bold move by VanEck comes with a clear strategy. They also plan to launch two Hyperliquid-linked ETFs in Europe. That region has more flexible rules, making it a natural testing ground. This two-pronged approach highlights the fierce competition in digital asset products. Companies want to offer advanced features like staking to a wider audience.
Why Hyperliquid?
Matt Maximo, a senior analyst at VanEck for digital assets, explained the choice. Hyperliquid fits into their broader strategy for liquid digital asset funds. Maximo pointed to the token’s steady growth and rising trading volumes. These factors, he said, made HYPE a strong candidate for a staking-focused ETF.
Kyle Dacruz, who directs digital asset products at VanEck, echoed this sentiment. He noted that demand for regulated HYPE access is growing in the U.S. An ETF could provide that exposure. It would also let investors earn staking rewards directly, a feature many are keen on.
A Tricky Regulatory Road Ahead
The U.S. securities regulator has not yet given the green light to any staking-enabled ETFs. This includes those tied to larger cryptocurrencies like Ethereum. But there’s a glimmer of hope. Updates to cryptocurrency regulations, specifically S-K and S-X rules, are on the horizon. These changes could slash review times from a lengthy 240 days to roughly 95 days. That might speed up approvals for pending applications.
VanEck isn’t new to this game. They have already submitted ETF proposals linked to Ethereum, Solana, and other assets. They even launched staking-enabled exchange-traded notes in Europe back in 2024. The firm also filed an S-1 form for an Avalanche ETF with the U.S. regulator. They are clearly planting their flags across the digital asset map.
Europe as a Testbed and HYPE’s Market Splash
VanEck’s interest in Europe isn’t unique. It follows the lead of firms like 21Shares, which listed Hyperliquid ETFs there in August. This strategy lets companies test new products in a more open market. What works in Europe often paves the way for future rollouts in the U.S.
Meanwhile, the HYPE token itself has been making waves. It’s at the center of a bustling, competitive ecosystem. Cryptopolitan reported that HYPE recently hit an all-time high near $55. This pushed it into the top fifteen cryptocurrencies by market capitalization. This impressive jump owes much to the race among players like Paxos, Frax, Agora, and Ethena. They are all vying to launch USDH, Hyperliquid’s native stablecoin.
Introducing USDH aims to pump up liquidity in HYPE’s DeFi sector. This part of the ecosystem already manages over $5 billion in USDC deposits. Such developments make the HYPE token more attractive to investors. They could also strengthen VanEck’s proposal for its staking-enabled ETF.
HYPE’s Recent Performance
Looking at HYPE’s recent performance, the token’s price jumped 20.7% over the last week. It settled at $54.45, though it saw a slight 0.5% dip in the past 24 hours. CoinMarketCap data shows its 24-hour trading volume soared to $543.4 million, a 54.76% increase. The token’s market capitalization stands at a hefty $18.7 billion. Hyperliquid is also expanding its footprint in decentralized finance, with a fully diluted valuation (FDV) of $54.77 billion.
Currently, HYPE is available on trading platforms such as Bitget, KuCoin, and Bybit. However, major players like Coinbase and Binance have not yet confirmed listing the token. This context makes VanEck’s announcement particularly relevant. It underscores the ongoing growth of HYPE and its thriving DeFi ecosystem.
Sources:
Cryptopolitan