Hyperliquid DEX Surpasses Coinbase in Daily Volume as Grayscale Files HYPE ETF

On March 20, 2026, Grayscale Investments filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission to launch the Grayscale HYPE ETF. The proposed fund, which would trade on NASDAQ under the ticker GHYP, would give everyday investors regulated exposure to HYPE — the native token of Hyperliquid, a decentralized derivatives exchange that has quietly become one of the most actively traded platforms in all of crypto.

The filing arrives as Hyperliquid’s numbers have begun turning heads well beyond the crypto world. The protocol processed $258 billion in perpetuals volume over the past 30 days — surpassing Coinbase’s total notional trading volume for 2025. A year ago, most traditional investors had never heard of it. That’s changing fast.

The Exchange a 10-Person Team Built

Hyperliquid is a Layer-1 blockchain (meaning it operates its own independent network, rather than running on top of Ethereum or another chain) purpose-built for trading perpetual contracts — financial instruments that let traders speculate on price movements without owning the underlying asset. Think of it as a 24/7 derivatives exchange run entirely by software, with no company controlling the order book.

What sets Hyperliquid apart is who built it. Jeff Yan, a Harvard graduate and former high-frequency trader at Hudson River Trading, founded the project with a team of roughly 10 engineers, including Harvard classmates and alumni from MIT, Caltech, and Citadel. Critically, Hyperliquid accepted no venture capital funding. Yan financed development from his own trading proceeds, meaning no early investors received discounted tokens before the public launch.

That structure shaped a historic token distribution. In November 2024, Hyperliquid airdropped 31.4% of HYPE’s total supply directly to early users — no presale, no insider allocations, no exchange listings before the drop. HYPE hit an all-time high of $59.30 and currently trades near $38, giving the network a market capitalization of approximately $9 billion and a ranking among the top 15 crypto assets globally. The platform holds $4.2 billion in total value locked (TVL, the measure of assets committed to its contracts) and counts more than 314,000 active addresses over the past 30 days.

Three Firms, One Prize

A spot ETF (exchange-traded fund) is a regulated fund that holds an actual asset — in this case HYPE tokens — and issues shares that trade on a stock exchange. For investors, the appeal is practical: instead of setting up a crypto wallet and navigating unregulated exchanges, they can hold HYPE exposure through a standard brokerage account, the same way they might hold Apple stock or a gold fund.

Grayscale is not first to file. Bitwise Asset Management submitted its own HYPE ETF application in September 2025, proposing a 0.67% annual management fee under the ticker BHYP on NYSE Arca. 21Shares followed in October 2025 at a 2.5% total expense ratio. Grayscale’s GHYP filing does not yet disclose its fee structure.

Grayscale’s track record in this space carries institutional weight. The firm converted its Bitcoin Trust (GBTC) into a spot Bitcoin ETF in January 2024 after a landmark legal victory over the SEC. It later launched a spot Ethereum ETF. Filing a HYPE ETF signals that Grayscale views Hyperliquid as a credible institutional-grade asset — a meaningful endorsement for a project that launched just over a year ago.

Edward McGee, Chief Financial Officer of Grayscale Investments Sponsors, LLC, is named as the key contact on the S-1. Coinbase will serve as both prime broker and custodian for the trust. Bank of New York Mellon will handle transfer agent and administrator functions. Davis Polk & Wardwell LLP is serving as legal counsel.

What to Watch

Regulatory Timeline: In September 2025, the SEC adopted an accelerated review framework that can reduce approval timelines from the standard 240 days to as few as 75 days. As of December 2025, approximately 126 crypto ETFs were awaiting SEC decisions. If GHYP follows the accelerated path, a ruling could arrive by late June 2026.

Fee Competition: With three issuers now competing for HYPE ETF approval, Bitwise’s 0.67% annual fee is currently the most competitive proposal on record. Grayscale will need to disclose its fee structure via an S-1/A amendment during the SEC review process — watch for that filing in the coming weeks.

HYPE Price: At roughly $38, HYPE sits 35.9% below its all-time high of $59.30. Bitcoin surged materially in the weeks following its January 2024 ETF approval. Market participants will be watching whether the announcement effect alone moves HYPE’s market.

Hyperliquid Protocol Growth: Oil perpetuals on Hyperliquid saw over $5 billion in volume in a single 72-hour period in March 2026, reflecting adoption beyond purely crypto-native traders. Continued growth in TVL and active users will strengthen the case for regulatory approval.