Grayscale, a prominent digital asset manager, has submitted an updated filing for its proposed Hyperliquid ETF (HYPE ETF) to the U.S. Securities and Exchange Commission (SEC), designating Anchorage Digital Bank as the fund’s custodian and primary service provider. This marks a significant shift from the previously indicated custodian, Coinbase.
The amendment to the HYPE ETF filing names Anchorage Digital Bank, a federally chartered digital asset bank, as the custodian. Previously, Coinbase Custody Trust Company was anticipated to fulfill this role. This change is noteworthy given Coinbase’s substantial involvement in the broader crypto ETF market; it serves as the primary custodian for a majority of U.S.-traded spot Bitcoin ETFs. Anchorage Digital Bank is already a secondary custodian for some of Grayscale’s existing Bitcoin and Ethereum trusts.
Key Takeaways
- Grayscale’s amended Hyperliquid ETF filing lists Anchorage Digital Bank as the custodian, replacing Coinbase.
- Anchorage Digital Bank previously served as a secondary custodian for Grayscale’s Bitcoin and Ethereum trusts.
- The move could signal evolving custodial preferences and strategies within the digital asset ETF sector.
- Anchorage Digital Bank has expanded its services, including in stablecoin infrastructure and wealth management.
- Hyperliquid’s decentralized exchange (DEX) platform is currently restricted for use within the United States.
The involvement of The Bank of New York Mellon as the transfer agent for the HYPE ETF remains unchanged in the updated filing. Anchorage Digital Bank, established in 2017, has been actively expanding its service offerings. Recent developments include growth in its stablecoin sector services for institutional clients, wealth management solutions, and comprehensive token lifecycle management. Furthermore, Anchorage recently became the first U.S. firm to onboard the Tron network following regulatory scrutiny of related entities, with plans to offer Tron-staking services.
Hyperliquid’s perpetual swaps DEX is currently inaccessible to users in the United States. Coinbase had listed Hyperliquid’s native token, HYPE, in February, following the protocol’s significant growth. While Binance remains the dominant player in crypto derivatives, Coinbase has been actively seeking to increase its market share, notably through its acquisition of Deribit, aiming to position itself as a comprehensive trading platform.
Potential Regulatory Precedent and Evolving Compliance
The decision by Grayscale to shift custodians for its proposed HYPE ETF, particularly by naming Anchorage Digital Bank, could set a precedent for how other digital asset issuers approach custody arrangements, especially in the context of evolving regulatory oversight. The SEC’s approval process for digital asset ETFs remains stringent, and the selection of custodians is a critical component of the operational and compliance framework. Companies are increasingly seeking custodians that demonstrate robust security protocols, regulatory compliance, and institutional-grade infrastructure. Anchorage’s status as a federally chartered digital asset bank, coupled with its recent equity investment from Tether, may lend it further credibility in this highly regulated environment. This move also highlights a diversifying landscape beyond the dominant players, with firms like Anchorage seeking to capture a larger share of the institutional custody market as more digital asset products gain traction.
Grayscale’s filing indicates that the ETF’s staking capabilities are contingent upon regulatory approval. The fund intends to utilize CoinDesk’s Hyperliquid Benchmark Extended Rate for pricing data. This filing follows earlier proposals submitted by competitors such as 21Shares and Bitwise late last year. If approved, the Grayscale Hyperliquid ETF is slated to be listed on the Nasdaq under the ticker symbol GHYP.
In parallel, Grayscale has been proactive in expanding its product suite, introducing proposals for ETFs linked to assets such as Binance’s BNB token and Zcash, among others. The firm also pioneered the offering of a Chainlink ETF. Hyperliquid is recognized as the largest on-chain perpetuals DEX by volume, though its services are restricted in the U.S. The protocol’s development team has established the Hyperliquid Policy Center, a lobbying group based in Washington D.C., to engage with regulatory bodies.
Anchorage Digital Bank recently secured a $100 million strategic equity investment from Tether, valuing the firm at $4.2 billion, an increase from its previous valuation of $3 billion in a 2021 funding round. Reports suggest that Anchorage is preparing for a potential public offering.
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