VanEck Aims to Bridge DeFi and Wall Street with Staking-Backed HYPE ETF

VanEck, a major asset manager with over $100 billion in assets under management, is preparing to file with the U.S. Securities and Exchange Commission (SEC) for the first-ever spot staking exchange-traded fund (ETF) for the HYPE token, the native token of Hyperliquid. The firm also plans to launch a physically backed exchange-traded product (ETP) in Europe, marking a potential milestone for both the firm and the rapidly growing decentralized finance (DeFi) sector. Hyperliquid, a Layer-1 blockchain launched in 2023, has quickly become a leading decentralized trading platform, generating significant daily volume and revenue, and is now attracting institutional interest.

The proposed U.S. ETF will offer investors exposure to HYPE while incorporating staking rewards, which could generate additional returns beyond price appreciation. This hybrid model, combining traditional ETF structure with DeFi-based yield generation, is expected to attract investors seeking both growth and income from their crypto holdings. VanEck’s strategy aligns with Hyperliquid’s own financial model, which has committed to using a portion of its platform revenue for token buybacks, potentially reducing supply and increasing demand. VanEck is also considering allocating a portion of its ETF’s net profits toward HYPE buybacks, reinforcing the alignment between the ETF and the token’s ecosystem.

Hyperliquid’s rapid ascent has been driven by its efficient infrastructure for perpetual futures and leveraged trading, alongside strong governance and scalability features. The platform has also announced plans to launch its own stablecoin, USDH, to reduce reliance on third-party stablecoins like USDC and USDT. VanEck’s CEO, Jan van Eck, has publicly expressed strong support for the project, highlighting the firm’s long-term ownership and strategic partnership with Hyperliquid. The firm’s CEO directly engaged with the Hyperliquid community on social media, emphasizing the project’s technological and governance strengths.

In Europe, where regulatory frameworks for crypto products are more mature, VanEck plans to list a physically backed ETP, making HYPE accessible to a broader investor base across the continent. The firm has previously launched crypto ETFs for Bitcoin and Ethereum and is currently exploring the possibility of a BNB ETF, further solidifying its role in expanding institutional access to digital assets. The HYPE ETP will compete with existing products, including the 21Shares Hyperliquid ETP, but will offer unique value through its staking feature.

Despite growing institutional interest, the path to regulatory approval remains uncertain. The SEC has been cautious in approving staking-based products, requiring new frameworks that address custody, governance, and yield generation. However, VanEck’s history of early filings, including its Bitcoin and Ethereum ETFs, suggests the firm is well-positioned to navigate the regulatory landscape. If approved, the HYPE ETF could catalyze further integration of DeFi protocols into traditional financial markets, offering a new class of products that combine the benefits of decentralized systems with the structure of regulated investing.