VanEck Bets on HYPE: Could This Be Crypto’s Next ETF Breakthrough?

VanEck, a leading investment firm in the cryptocurrency space, is preparing to file for the launch of a Hyperliquid (HYPE) physically backed Exchange Traded Fund (ETF) in the United States, according to sources within the firm. This marks a significant step for HYPE, which would become the youngest token to receive an ETF filing from VanEck. Currently, VanEck already offers ETFs for Bitcoin and Ethereum, and it is expanding its exposure to other promising crypto assets. The firm’s digital assets investment team has identified Hyperliquid as a key focus area, with senior digital assets investment analyst Matt Maximo citing strong potential for the token.

Hyperliquid is a layer-1 blockchain that underpins a popular perpetual futures exchange. Since its launch in 2023, the platform has seen rapid growth, with the chain consistently leading in network revenue for four consecutive weeks. This growth has sparked interest from VanEck, which sees an opportunity to bring HYPE exposure to U.S. investors. A HYPE staking ETF would enable investors to gain exposure to the token without requiring them to trade on major U.S. crypto exchanges like Coinbase, where HYPE is not currently listed.

According to Kyle Dacruz, director of digital assets products at VanEck, the firm is also considering using a portion of its investment products’ net profits to fund HYPE buybacks. Hyperliquid already conducts buybacks equal to nearly all of its platform revenue, a model that aligns with VanEck’s strategy. Dacruz emphasized that the decision to pursue HYPE ETFs is independent of Agora, a stablecoin startup co-founded by Nick van Eck, son of VanEck CEO Jan van Eck. Agora is one of several firms competing to issue Hyperliquid’s proposed USDH stablecoin.

The U.S. Securities and Exchange Commission (SEC) has been receiving numerous ETF applications, including ones for larger tokens like XRP and SOL. While approvals for European ETPs have moved more quickly—21Shares successfully launched a Hyperliquid ETP in August—U.S. regulatory action may require additional time. VanEck has also submitted applications for ETFs for tokens such as AVAX, SOL, JitoSOL, and BNB, highlighting its broader strategy to expand crypto product offerings.

Meanwhile, Hyperliquid’s USDH stablecoin initiative is attracting attention from multiple industry players. Paxos, Frax, Sky (formerly MakerDAO), and Agora are among the firms vying for the opportunity to issue USDH. Each proposal includes different incentives for HYPE buybacks and community benefits. Agora’s proposal involves a $10 million initial liquidity offering, with all net reserve revenue going toward HYPE buybacks and community funds. The Hyperliquid community will ultimately decide the issuer through a validator vote.

In recent trading, HYPE has reached a new all-time high, driven by institutional interest and developments in the Hyperliquid ecosystem. The token’s price climbed to $55.04 on September 9, positioning it among the top 15 digital assets by market rank. Technical analysis suggests a continuation of the bullish trend, with the price consolidating above key moving averages and showing strong buyer sentiment. The recent surge reflects growing confidence in Hyperliquid’s role in the DeFi and trading infrastructure space.