21Shares launches Hyperliquid ETF THYP with spot HYPE exposure

The 21Shares Hyperliquid ETF (ticker THYP) began trading on Nasdaq on May 12, 2026, giving U.S. investors spot exposure to the Hyperliquid token (HYPE) and the option to earn staking rewards [5]. The product is not registered under the Investment Company Act of 1940, meaning it lacks the investor protections typical of traditional ETFs [1].

Key takeaways

• THYP tracks HYPE via the FTSE Hyperliquid Index and holds the token directly [1][2]
• The ETF charges a 0.3% management fee, higher than many traditional funds but lower than other crypto‑focused products [5]
• Staking of a portion of the fund’s HYPE may generate additional rewards, but adds operational and regulatory risk [1][5]
• First‑day trading saw $1.8 million in volume and about $1.2 million of net inflows [5]
• Shares trade at market price, not NAV, and cannot be redeemed individually [1][5]

Structure and performance

THYP is structured as a “33‑Act” spot exchange‑traded product, meaning it is not subject to the same oversight as 40‑Act registered ETFs [1][5]. The fund seeks to mirror the performance of HYPE as measured by the FTSE Hyperliquid Index, after accounting for expenses and any staking rewards the sponsor elects to distribute [1]. According to 21Shares, the ETF holds a single asset—HYPE—representing 100 % of its holdings [2]. As of the latest market data, THYP’s price was $34.88, with a net asset value of $34.08, indicating a modest premium to NAV [3].

The expense ratio reported by different sources varies: the sponsor’s site lists a 0.3 % fee, while a third‑party tracker cites a 3.00 % expense ratio [2][5]. The product’s beta of –0.29 suggests it moves opposite to broader market trends, a characteristic sometimes used for short‑term protection [2]. Trading volume remains thin, with an average daily volume of about 315,000 shares, and spreads can be wide [2].

Risks and investor considerations

Investors in THYP face several risks beyond typical market volatility. Because the fund may stake part of its HYPE holdings, it is exposed to operational, technological, regulatory, and counterparty risks associated with staking [1]. Staking also introduces lock‑up periods and potential “slashing” penalties if validators misbehave [5]. Additionally, the ETF’s shares are bought and sold at market price, which can trade at a discount or premium to NAV, and individual shares cannot be redeemed directly from the fund [1][5].

The fund’s lack of registration under the 40‑Act means it does not benefit from the same investor protections as traditional ETFs, and the entire investment could be lost if HYPE’s price collapses [1]. The sponsor emphasizes that the product is suitable only for investors who can afford to lose their entire investment [1].

Why it matters

THYP represents one of the first U.S.‑listed products offering direct, spot exposure to a decentralized finance token, signaling growing institutional interest in crypto assets despite regulatory constraints [5]. Its launch provides a bridge for traditional investors to access Hyperliquid’s ecosystem, including potential staking rewards, while highlighting the trade‑off between innovative exposure and heightened risk. Future developments may include additional staking reward schedules and potential regulatory scrutiny, which could affect the fund’s structure and investor protections.