VanEck's New Hyperliquid ETF and ETP: Pioneering Institutional Access to DeFi Growth

The launch of VanEck's Hyperliquid spot ETF in the U.S. and ETP in Europe marks a pivotal moment in the convergence of institutional finance and decentralized finance (DeFi). By offering direct exposure to the HYPE token—a native asset of the high-performance Layer-1 blockchain Hyperliquid—VanEck is positioning itself at the forefront of a market that has seen DeFi total value locked (TVL) surge to $156 billion in Q1 2025Web3 in 2025: Where We Are, What's Next, and What the Data ...^[4]. This move not only capitalizes on Hyperliquid's rapid growth but also addresses the growing demand for institutional-grade access to DeFi, a sector that has historically been fragmented and inaccessible to traditional investors.

Institutional-Grade Access: Custody, Compliance, and Liquidity

VanEck's ETF and ETP are designed to mitigate the operational and regulatory risks associated with DeFi. A critical enabler of this strategy is Kiln, an enterprise-grade staking and DeFi yield platform that integrates custody, compliance, and multi-protocol supportPaving the path for trillions in institutional capital to move ..., [https://www.kiln.fi/post/paving-the-path-for-trillions-in-institutional-capital-to-move-onchain-introducing-kiln-defi-in-the-kiln-dashboard]^[3]. Kiln's infrastructure allows institutions to stake HYPE tokens while adhering to sanctions screening, KYC checks, and SOC 2-aligned custody standardsPaving the path for trillions in institutional capital to move ..., [https://www.kiln.fi/post/paving-the-path-for-trillions-in-institutional-capital-to-move-onchain-introducing-kiln-defi-in-the-kiln-dashboard]^[3]. This partnership ensures that VanEck's products meet the stringent requirements of institutional investors, who demand transparency and security in digital asset exposure.

Hyperliquid's native architecture further enhances liquidity. The platform's split-chain design—a hybrid of centralized and decentralized execution—achieves $330 billion in monthly trading volume and processes up to 200,000 transactions per secondWeb3 in 2025: Where We Are, What's Next, and What the Data ...^[4]. This CEX-like speed, combined with on-chain custody, creates a robust foundation for institutional participation. Additionally, Hyperliquid's HLP vault and buyback mechanisms align token holder incentives, reinforcing long-term value accrualWeb3 in 2025: Where We Are, What's Next, and What the Data ...^[4].

DeFi's Explosive Growth and Institutional Adoption

The DeFi market's expansion has been fueled by institutional adoption. By mid-2025, DeFi TVL had grown to $156 billion, with Ethereum and protocols like Aave dominating the landscapeWeb3 in 2025: Where We Are, What's Next, and What the Data ...^[4]. Hyperliquid's TVL alone reached $3.5 billion by June 30, 2025, supported by a 78% surge in user addresses year-to-datePaving the path for trillions in institutional capital to move ..., [https://www.kiln.fi/post/paving-the-path-for-trillions-in-institutional-capital-to-move-onchain-introducing-kiln-defi-in-the-kiln-dashboard]^[3]. Meanwhile, HYPE's market cap hit $12 billion in August 2025, driven by a 99% fee allocation to buybacksCrypto Market Report August 2025: DeFi is breaking all ...^[5]. These metrics underscore the token's utility and institutional appeal, as evidenced by companies like Lion Group converting SUI holdings to HYPEVanEck Plans HYPE Staking ETF and European ETP for ..., [https://www.bitget.com/news/detail/12560604962248]^[2].

VanEck's $500 million target for the HYPE ETF reflects confidence in this trajectory. The firm's decision to allocate profits toward token buybacks mirrors Hyperliquid's own strategy, creating a reinforcing loop of demandVanEck Plans HYPE Staking ETF and European ETP for ..., [https://www.bitget.com/news/detail/12560604962248]^[2]. This approach is particularly compelling given HYPE's absence from major U.S. exchanges, which positions the ETF as a unique access pointVanEck Plans HYPE Staking ETF and European ETP for ..., [https://www.bitget.com/news/detail/12560604962248]^[2].

Strategic Alignment with DeFi Trends

The ETF's launch aligns with broader regulatory and market trends. The SEC's “Project Crypto” and the introduction of in-kind ETP transactions signal a shift toward institutional-friendly frameworksVanEck Crypto Monthly Recap for July 2025, [https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vaneck-crypto-monthly-recap-for-july-2025/]^[1]. Meanwhile, hybrid CEX+DEX models are gaining traction, offering the security of decentralization with the efficiency of centralized executionVanEck Plans HYPE Staking ETF and European ETP for ..., [https://www.bitget.com/news/detail/12560604962248]^[2]. VanEck's products are poised to bridge this gap, enabling investors to participate in DeFi's innovation without sacrificing compliance or liquidity.

Conclusion

VanEck's Hyperliquid ETF and ETP represent a strategic response to the maturation of DeFi and the demand for institutional-grade access. By leveraging Kiln's custody solutions, Hyperliquid's liquidity infrastructure, and a token buyback model, the firm is addressing key barriers to adoption. As DeFi TVL and institutional participation continue to rise, these products are well-positioned to capitalize on a market that is redefining the boundaries of traditional finance.