Crypto asset management company Grayscale has taken a significant step towards developing an exchange-traded fund (ETF) based on $HYPE, the native token of the Hyperliquid ecosystem. The company has submitted amendment #1 of its S-1 registration application for “Grayscale $HYPEETF” to the U.S. Securities and Exchange Commission (SEC).

According to the documents provided, the Grayscale $HYPEETF aims to offer investors exposure to $HYPEwithout directly purchasing the asset. The fund, to be established within a Delaware-based trust, will directly hold $HYPEtokens, and the share price is intended to reflect the value of the amount of $HYPEheld. It was also stated that staking income could be included in the fund’s performance under certain conditions.

If approved, the fund plans to trade on the Nasdaq Stock Market under the ticker symbol “GHYP”. However, it must fully meet both SEC approval and Nasdaq listing criteria before it can begin trading. The application states that the ETF shares will not initially have a publicly traded market and will be issued continuously.

According to Grayscale’s application, ETF shares can only be created and redeemed in blocks of 10,000 “baskets” through authorized participants. These transactions can be carried out both in kind (as a form of $HYPE) and in cash. Custody services will be provided by Anchorage Digital Bank, while transfer and administrative transactions will be handled by Bank of New York Mellon.

*This is not investment advice.