21Shares Launches Spot Hyperliquid ETF THYP on Nasdaq With Staking Rewards

21Shares is set to launch its spot Hyperliquid ETF, trading under the ticker THYP, on Nasdaq on May 12, offering investors regulated exposure to Hyperliquid’s native HYPE token through traditional brokerage accounts. The new crypto ETF is designed as a grantor trust rather than a 1940 Act fund, allowing the issuer to stake HYPE tokens while still providing passive price exposure to investors.

The THYP ETF charges a 0.30% annual sponsor fee, which will be paid directly in HYPE tokens. Digital asset custody for the fund will be handled by Anchorage Digital Bank and BitGo Bank & Trust, both of which utilize institutional-grade cold storage security backed by up to $350 million in theft and fraud insurance coverage.

According to the filing, 21Shares plans to stake between 30% and 70% of the trust’s HYPE holdings through blockchain infrastructure provider Figment Inc. The sponsor also retains the flexibility to increase the staking allocation up to 100% if market conditions support the move. Staking rewards generated from the holdings will be distributed with approximately 70% going to the trust and the remaining 30% allocated to the staking provider.

The ETF will support in-kind creations and redemptions in baskets of 10,000 shares, available exclusively to authorized participants. Pricing for the product will track the FTSE Hyperliquid Index.

Following the announcement, Hyperliquid’s HYPE token saw a sharp price increase and traded around $42.07. However, the prospectus warns investors about substantial risks, highlighting HYPE’s annualized volatility above 126%, potential validator penalties, staking lockup periods ranging from one to seven days, and possible redemption delays.

The launch comes shortly after 21Shares introduced its leveraged Hyperliquid product, TXXH, on April 30. Meanwhile, competitors including Bitwise and Grayscale have also filed applications for spot HYPE ETFs under the proposed tickers BHYP and GHYP. Analysts are now watching THYP closely to gauge institutional demand for exposure to the rapidly growing Hyperliquid perpetuals trading ecosystem.