Grayscale HYPG Adds BitGo as HYPE Staking Assets Reach USD 217.8 Million

Grayscale has added BitGo Bank & Trust as another custodian for the HYPE tokens backing its Hyperliquid staking product, expanding custody arrangements for a trust holding about USD 217.8 million. The change took effect September 30 and appeared in an October 5 Form 8-K filing. Meanwhile, the Grayscale Hyperliquid Staking ETF, trading under HYPG, continues to stake roughly 89% to 91% of its HYPE holdings.

BitGo Joins HYPG Custody Structure

BitGo now serves as an additional custodian alongside Anchorage Digital Bank, giving the trust a second custody option for its HYPE holdings. The arrangement adds another custody provider while Grayscale maintains most of the trust’s HYPE in staking.

HYPG began trading on Nasdaq on June 3. The launch followed the SEC declaring its registration effective one day earlier. Grayscale renamed the product from the Grayscale HYPE ETF in late May.

The product became the third major U.S. spot HYPE vehicle to reach the market. Unlike a mutual fund, HYPG operates as a grantor trust rather than under the Investment Company Act of 1940.

Therefore, HYPG shareholders hold fractional interests in the trust’s HYPE assets rather than owning the tokens directly. The structure also means investors do not receive every protection available through Investment Company Act funds.

Grayscale reports that HYPG stakes roughly 89% to 91% of its tokens. Recent gross staking rewards stood near 2.26%, while the net staking yield reached about 1.69% after fees and expenses.

That staking income increases the trust’s net asset value and supports monthly distributions. At launch, HYPG carried a 0.29% management fee, the lowest among the U.S. spot HYPE products cited.

HYPG Holds 2.31 Million HYPE Tokens

As of October 6, HYPG held about 2.31 million HYPE tokens and managed approximately USD 217.75 million in assets. Grayscale also reported 6.54 million shares outstanding.

Net asset value stood near USD 33.30 per share, while the market price traded around USD 33.35. Daily trading volume has ranged from tens of thousands to low hundreds of thousands of shares.

Inflows have varied since the June launch, although the trust has continued attracting capital. Staking creates another consideration since locked HYPE can remain temporarily unavailable for transfers or sales.

The trust’s holdings represent less than 1% of Hyperliquid’s circulating token supply at the supplied market price. HYPE had about 250.6 million tokens in circulation on October 6.

Read More: Grayscale’s Zcash ETF Reaches USD 1B as ZEC Price Gains Lift Assets

HYPE Rises as ETF Competition Builds

HYPE traded at USD 93.60 on October 6 after gaining 3.74% over 24 hours. The token had moved above USD 95 before giving back part of the advance.

Its market capitalization stood at USD 23.45 billion, up 3.69%, while 24-hour trading volume jumped 123.2% to USD 1.18 billion. Its fully diluted valuation reached USD 89.01 billion. Two competing HYPE products also provide a benchmark for HYPG. The 21Shares Hyperliquid Staking ETF, trading as THYP, launched around May 12 and charges a 0.30% fee.

THYP manages about USD 93 million. Meanwhile, the Bitwise Hyperliquid ETF, or BHYP, launched in mid-May and charges roughly 0.34%. It holds nearly USD 203 million, including about 2.18 million HYPE.

Together, the three spot products manage about USD 478 million. That amount equals close to 2% of HYPE’s market capitalization based on the supplied figures.

Other vehicles include the 21Shares 2x Long HYPE ETF, known as TXXH, and treasury company Hyperliquid Strategies, or PURR. Competition now spans management fees, custody arrangements, staking efficiency and asset growth.

Future flows will also depend on token unlocks, competition among perpetual futures venues and regulatory treatment of perpetual exchanges. HYPG enters that environment with BitGo added to its custody structure and nearly 90% of its HYPE currently staked.

Final Thoughts

Grayscale’s HYPG now uses BitGo alongside existing custodians while managing about USD 217.8 million and staking nearly 90% of its HYPE. With HYPE near USD 93.60, competition among U.S. products centers on fees, staking returns, custody and asset growth as the market develops.