Grayscale seeks SEC approval for HYPE ETF tracking Hyperliquid's decentralized exchange.

The asset manager filed paperwork for an ETF that would track Hyperliquid, a leading onchain perpetuals DEX. This expands Grayscale's product lineup beyond Bitcoin and Ethereum funds.

Hyperliquid processes billions in daily volume. The proposed ETF would give traditional investors exposure to decentralized finance's most active sector.

Regulatory challenges remain significant. The SEC has been cautious about derivatives-based ETFs, especially those linked to decentralized protocols.

Key point: Approval would validate onchain derivatives as a legitimate asset class and could attract institutional capital.