VanEck Bets HYPE Can Crack the ETF Code Before the SEC Does

VanEck, a crypto-focused asset management firm, is preparing to file for a Hyperliquid spot staking ETF in the United States and an exchange-traded product (ETP) in Europe, according to internal sources at the firm. If successful, this would mark the first ETF filing for HYPE, the native token of the Hyperliquid Layer-1 blockchain, and could make it the youngest token to be offered in such a format by VanEck. The firm currently offers ETFs for bitcoin and ether, among other crypto assets. Hyperliquid has been a key focus for VanEck’s liquid fund this year, with the company considering the allocation of a portion of its net profits from the investment products toward HYPE buybacks.

Hyperliquid is a Layer-1 blockchain that underpins a popular perpetual futures exchange and has seen rapid growth since its launch in 2023. It has led all blockchains in network revenue for four consecutive weeks as of the latest data. VanEck views HYPE as an attractive ETF candidate due to its strong performance and high demand, despite the token not being listed on major U.S. crypto exchanges like Coinbase. A staking ETF would provide U.S. investors with better access to the token and could potentially encourage major exchanges to list it.

The firm’s Hyperliquid ETF and ETP products would depend on regulatory approval, although a similar product—21Shares’ Hyperliquid ETP—was successfully launched in Europe in August. In the U.S., the SEC faces a backlog of crypto ETF applications, including those for larger tokens like XRP and SOL. VanEck has also applied for ETFs for AVAX, SOL, JitoSOL, and BNB. The firm’s move comes amid a competitive environment in the crypto space, particularly around Hyperliquid’s USDH stablecoin initiative.

Hyperliquid has become a focal point for several major crypto companies vying to issue the USDH stablecoin. The competition includes well-known names like Paxos, Sky, and Frax Finance, with some proposals supported by executives from firms like BlackRock. Native Markets, a newer entity, currently appears to be the frontrunner in the USDH race. The USDH stablecoin is expected to be Hyperliquid-aligned and integrated into the platform’s ecosystem. Native Markets has proposed a stablecoin framework that is GENIUS Act-compliant and intends to use Bridge, a platform acquired by Stripe, to manage its reserves.

VanEck’s decision to pursue a HYPE ETF is considered separate from its involvement with the USDH stablecoin initiative. The firm’s director of digital assets products, Kyle Dacruz, emphasized that the ETF filing is not contingent on the outcome of the USDH competition. VanEck CEO Jan van Eck has publicly expressed bullish sentiment toward Hyperliquid and his son, Nick van Eck, is co-founder of Agora, the startup behind one of the USDH proposals. However, Dacruz stressed that Agora and VanEck are distinct entities.

VanEck’s filing for the HYPE ETF would continue a trend of being the first to file for major crypto ETFs, including those for Solana and Ethereum. The firm’s aggressive expansion into the crypto asset space reflects growing institutional interest in digital assets and the evolving regulatory landscape in the U.S. and Europe.