Grayscale Investments has submitted a third amended S-1 Registration Statement to the U.S. Securities and Exchange Commission for its proposed Hyperliquid exchange-traded fund, according to Bloomberg ETF analyst James Seyffart. The updated filing introduces a staking rewards component and replaces Coinbase Custody with Anchorage Digital as the fund’s custodian, suggesting that substantive negotiations between the issuer and the regulator are advancing. The proposed product, which would trade under the ticker GHYP on Nasdaq, arrives as HYPE trades near 58 dollars with a market capitalization of approximately 14 billion dollars, according to CoinGecko data.

Third Amendment Adds Staking Exposure and New Custodian

The latest S-1 revision marks a meaningful structural evolution from Grayscale’s initial filing. The proposed fund would now offer investors indirect exposure to both HYPE token price movements and staking income generated on the Hyperliquid network, effectively positioning the product as a dual-return vehicle. If approved by Nasdaq, the ETF could be listed under the name Grayscale Hyperliquid Staking ETF, distinguishing it from simpler spot-tracking products already on the market.

The custodian switch from Coinbase Custody to Anchorage Digital represents another notable change. Anchorage, a federally chartered digital asset bank regulated by the Office of the Comptroller of the Currency, brings a distinct regulatory profile that may align more closely with the SEC’s evolving expectations for crypto ETF infrastructure. Grayscale, which manages approximately 35 billion dollars in digital asset products across its broader portfolio, has not publicly commented on the specific reasons for the custodial transition.

Competitive Landscape Intensifies Around HYPE ETFs

Grayscale is not the only asset manager pursuing regulated exposure to the Hyperliquid ecosystem. Bitwise and 21Shares have already launched Hyperliquid-linked ETFs that have collectively attracted approximately 53 million dollars in net inflows since their debut earlier in 2026, according to Bloomberg data. The 21Shares product recorded approximately 16.6 million dollars in single-day inflows, while the Bitwise fund drew 8.8 million dollars during the same session, indicating sustained institutional appetite beyond initial launch periods.

The HYPE token has gained more than 43 percent over the past seven days and reached an all-time high of 62.18 dollars on May 21, according to CoinGecko. The Hyperliquid platform processes approximately 200,000 orders per second through its fully on-chain order book, with total value locked exceeding 5.8 billion dollars. These metrics have contributed to HYPE rising to a top-fifteen digital asset ranking by market capitalization, a position that has drawn attention from multiple institutional product issuers.

Filing Pattern Suggests Active SEC Engagement

Seyffart noted that the rising number of S-1 amendments indicates that negotiations between issuers and the SEC are actively progressing, a signal that market participants generally interpret as constructive. The SEC has historically required multiple rounds of revisions before approving novel crypto ETF structures, with Bitcoin spot ETFs going through similarly extended amendment cycles before receiving approval in January 2024.

The addition of staking rewards to the proposed Hyperliquid ETF raises a separate regulatory question. The SEC has previously expressed caution around staking in investment products, citing concerns about whether staking rewards could constitute securities or alter the risk profile of a fund. The inclusion of staking in this amendment suggests that Grayscale and the SEC may have reached at least a preliminary framework for addressing these concerns, though no formal approval timeline has been disclosed.

Risks and Uncertainties

Despite the momentum around Hyperliquid ETF products, several risks remain. The SEC could still reject or significantly delay the Grayscale filing, as the agency has shown willingness to extend review periods for novel crypto products. The staking component introduces additional regulatory complexity that could slow the approval process or require further structural modifications. HYPE’s rapid price appreciation, with more than 43 percent gains in a single week, raises questions about near-term valuation sustainability, and the token has already pulled back from its recent all-time high.

The broader ETF market for alternative cryptocurrencies beyond Bitcoin and Ethereum remains relatively untested, and sustained inflows into Hyperliquid products are not guaranteed. Competitive pressure from Bitwise and 21Shares products that are already trading may also limit Grayscale’s first-mover advantage by the time the GHYP fund clears regulatory review.

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