Institutional Gold Rush: DeFi Gets a Regulated Makeover with VanEck’s HYPE ETF

VanEck, a financial services firm, has launched a new exchange-traded fund (ETF) focused on Hyperliquid, a decentralized derivatives exchange, in both the United States and Europe. The move follows increased activity and institutional interest in Hyperliquid's native token, HYPE, which recently reached a new all-time high of $55.04. The firm’s decision to offer the Hyperliquid ETF reflects a growing trend of financial institutions entering the decentralized finance (DeFi) space by creating products that bridge traditional and crypto markets.

Hyperliquid’s governance token, HYPE, has gained momentum over the past month, particularly due to proposals for the platform’s upcoming stablecoin, USDH. Multiple financial entities, including Paxos and Agora, have submitted plans to manage this stablecoin, which is intended to be fully collateralized and compliant with U.S. and European regulatory frameworks. These proposals include aggressive revenue-sharing models, such as using a large portion of the yield from USDH reserves to buy back HYPE tokens and support the ecosystem.

Paxos, which already operates stablecoins through its partnerships with major platforms like PayPal and Venmo, submitted a proposal that would see 95% of USDH-generated interest used for HYPE buybacks. The firm has also pledged to list HYPE across its brokerage infrastructure, which includes several major fintech platforms. According to Paxos Labs co-founder Bhaumik Kotecha, the firm aims to maintain an open infrastructure for developers and payment providers, which could enhance USDH's liquidity and efficiency across on-ramps and DeFi protocols.

Agora, another key player in the stablecoin space, has also entered the competition with a coalition that includes partners such as Rain, LayerZero, and Moonpay. Its proposal involves redirecting all net revenue from USDH operations back into the Hyperliquid ecosystem, either through its Assistance Fund or by purchasing HYPE on the open market. Agora’s CEO emphasized the firm’s neutrality and its non-competitive stance with partners, positioning USDH as a native asset to Hyperliquid rather than a repurposed token from another ecosystem.

The increased interest in HYPE has driven the token’s price above $50, with the token trading near its recent peak of $51. This rally has been supported by rising trading volumes and strong technical indicators. Traders and analysts are now watching whether the current momentum can push HYPE past its previous all-time high and potentially set a new level of $52.16. The price has shown resilience in the $49–$50.66 resistance zone and has maintained bullish control as long as trading volumes remain elevated.

The validator vote for USDH management is scheduled for September 14, which will determine the winning proposal and shape the future trajectory of the stablecoin and, by extension, the HYPE token. If Paxos or Agora wins the mandate, Hyperliquid could benefit from deeper integration with regulated financial systems, which may further attract institutional capital and stabilize long-term growth.