ETF Growth Fuels HYPE Price Gains as Support Zone Comes into Focus

The 21Shares Hyperliquid Staking ETF has reported its first full operating-period results, providing insight into the institutional exposure to Hyperliquid's native token, HYPE. The fund held $71.17 million in net assets at the end of June and had staked most of its HYPE holdings, with 94.43% of its HYPE holdings staked at the end of the reporting period.

The ETF generated $125,025 in staking rewards during its initial operating period and distributed $73,118 to shareholders. The structure of the ETF is notable, as it tracks HYPE through the FTSE Hyperliquid Index while also reflecting staking rewards when the sponsor determines that staking can be undertaken without excessive legal or regulatory risk.

The ETF's staking mechanism brings up a liquidity issue, as HYPE staked will be subject to the seven-day unbonding period imposed on the network. The investment fund will normally allocate from 60% to 100% of its HYPE based on liquidity needs, redemptions, market situation, and validator performance.