Grayscale launches lowest-fee Hyperliquid ETF amid ETF competition
In brief
- Grayscale HYPG ETF launched on Nasdaq Wednesday with 0.29% fee, undercutting 21Shares and Bitwise competitors
- Bitwise leads with $85 million inflows; 21Shares has attracted $57 million in the category
- Hyperliquid protocol generated $857 million in fees during 2025, with 99% allocated to token buybacks
Fee competition heats up
Grayscale's HYPG charges a 0.29% gross management fee, just under 21Shares' THYP at 0.30% and lower than Bitwise's BHYP. The fee compression reflects intense competition in the nascent Hyperliquid ETF space, where even basis points matter to institutional and retail investors tracking the same underlying asset.
Bitwise currently leads the market with almost $85 million in net inflows as of June 3. 21Shares' fund has attracted about $57 million since its launch. Grayscale's entry at the lowest fee suggests the firm is betting on price-sensitive flows, particularly from advisors and funds that track ETF fee rankings closely.
Hyperliquid's rapid ascent
Hyperliquid, founded in 2024, has quickly become a major decentralized blockchain. The protocol functions as an integrated trading and smart contract ecosystem with shared liquidity infrastructure for developers, allowing both trading and application deployment on a single chain.
The numbers are striking. In 2025, the protocol generated approximately $857 million in fees, with 99% allocated to token buybacks. Hyperliquid layer-1 ranked among the top blockchain chains by app revenue in May, generating $53 million — second only to Solana at $91 million.
Token performance and outlook
HYPE held steady at around $72 at press time, capping an 184% year-to-date gain that has outpaced leading crypto assets. The token's strength reflects investor appetite for exposure to Hyperliquid's growing ecosystem and fee-generation model.
The three-way ETF race now offers investors multiple pathways to gain exposure. Grayscale's fee advantage positions it as an attractive option for cost-conscious investors, while the overall inflow competition underscores growing mainstream interest in accessing decentralized finance infrastructure through regulated, exchange-traded products.
