VanEck Bets on HYPE's Rise as ETF Push Challenges SEC Stance

VanEck, a major player in the digital asset management space, is preparing to file for its first spot staking ETF focused on Hyperliquid's native token, HYPE, in the United States, alongside an exchange-traded product (ETP) in Europe. The move was disclosed by two firm insiders to Blockworks. If approved, the HYPE ETF would make Hyperliquid the youngest token to secure an ETF filing from VanEck, which already offers ETFs for cryptocurrencies like Bitcoin and Ethereum.

Hyperliquid, a layer-1 blockchain supporting a prominent perpetual futures exchange, has gained traction since its 2023 launch. It has led all other blockchains in network revenue for four consecutive weeks, according to Blockworks Research. The firm’s interest in HYPE is driven by the token’s strong market performance and growing demand, particularly in a U.S. market where it is not yet listed on major exchanges like Coinbase. VanEck senior digital assets investment analyst Matt Maximo emphasized that Hyperliquid has been a key focus for the firm’s liquid fund this year.

The firm is also evaluating whether to allocate a portion of the net profits from its digital asset investment products to HYPE buybacks, a practice Hyperliquid already engages in, where nearly all of the platform’s revenue is used for buybacks. Kyle Dacruz, director of digital assets products at VanEck, highlighted that the staking ETF could improve U.S. investor access to HYPE and potentially accelerate its listing on major exchanges.

Regulatory approval remains a critical factor for the U.S. filing. While 21Shares recently launched a European HYPE ETP in August, the U.S. SEC has yet to approve staking-related products, including Ethereum-focused ones from firms like BlackRock. VanEck has also submitted applications for ETFs on other tokens, such as AVAX, SOL, JitoSOL, and BNB, reflecting a broader strategy to expand its digital asset offerings.

The development coincides with VanEck’s involvement in the USDH stablecoin project, a proposed stablecoin aligned with Hyperliquid. Although the firm’s decision to file for the HYPE ETF is separate from its engagement with USDH, the CEO, Jan van Eck, has publicly expressed strong support for Hyperliquid’s technology and decentralized governance. The firm’s push for the HYPE ETF is seen as a continuation of its early-mover strategy in the digital asset space, having previously filed first for Solana and Ethereum ETFs.