Institutional demand for Hyperliquid's HYPE token is building along two tracks at once: spot ETFs that are already trading in the U.S. and drawing fresh capital, and Grayscale's own product moving through the SEC registration process. On May 23, 2026, Grayscale submitted Amendment #3 to its Form S-1 for the proposed Grayscale HYPE ETF, expected to trade under ticker $GHYP. The filing is the third revision since the initial registration was submitted on March 20, 2026. Bloomberg ETF analyst James Seyffart noted on X that repeated amendments typically signal a filing is progressing toward launch, adding that $GHYP would bring the number of "hyperliquid-native" spot ETFs on U.S. exchanges to three. Grayscale has also been positioning ahead of a potential launch. The firm has previously accumulated roughly $25 million worth of HYPE and staked the tokens directly on the protocol. Amendment #3 follows earlier updates that included switching the custodian to Anchorage Digital Bank and adding language that could allow staking within the ETF structure. Those changes are widely viewed as substantive product design refinements rather than minor edits. Two spot HYPE ETFs are already live in the U.S. market: - 21Shares Hyperliquid ETF (Nasdaq; THYP / 1THYP) - Bitwise Hyperliquid ETF (NYSE; BHYP / 2BHYP) Data from SoSoValue as of May 22, 2026 shows cumulative net inflows of $74.91 million in under two weeks after the first product launched on May 12, with combined net assets of $89.20 million. A May 20 jump of $25.46 million in a single session stood out, with the newsletter attributing much of that move to Bitwise's approach of accumulating HYPE using ETF fees. The flow pattern has remained positive on subsequent days, suggesting sustained demand rather than one-time launch activity. At $89.20 million in combined net assets, the two ETFs represent about 0.68% of HYPE's total market capitalization, a share that would likely rise if Grayscale's $GHYP becomes the third competing spot product. In the SEC review process, amendments are common and typically reflect ongoing back-and-forth between the issuer and regulators. The pace of Grayscale's updates—from the March 20 filing to three amendments in less than two months—points to active SEC engagement and a prospectus moving toward effectiveness. Earlier revisions also suggest Grayscale may pursue staking inside the ETF, which could introduce yield and differentiate $GHYP from existing 21Shares and Bitwise offerings. The institutional ETF narrative has been unfolding alongside strong token performance. HYPE is quoted at $54.95, up 32.11% over seven days and 116.08% year-to-date, with an approximate market cap of $13.97 billion. The newsletter ties that performance to a series of 2026 catalysts, including Goldman Sachs involvement, an SEC innovation exemption for tokenized securities, the SpaceX PreIPO perpetual product, a Coinbase and Circle USDC partnership, and record open interest levels cited as $2.6 billion for HIP3. It also points to Hyperliquid's revenue mechanics as a key underpinning: 97% of trading fees are directed to HYPE buybacks, creating a fee-to-buyback dynamic that scales with platform activity. If $GHYP launches, three spot HYPE ETFs (21Shares, Bitwise, and Grayscale) would be an unusual setup for a crypto asset outside bitcoin and ethereum. Multiple competing products would also mean multiple fee schedules, distribution channels, and sales forces marketing HYPE exposure at the same time. The newsletter argues that even small allocations across those networks—collectively tied to hundreds of billions in addressable capital—could translate into material incremental demand. Bottom line: Grayscale's Amendment #3 and the early inflow data for existing spot HYPE ETFs both point to accelerating institutional adoption. Near-term markers to watch include additional S-1 updates or timing signals from the SEC, continued daily flow figures for THYP and BHYP, and whether sustained ETF demand pushes HYPE back toward its prior all-time high of $62.14. FAQ highlights - What is Amendment #3? The third revision to Grayscale's S-1 for the proposed Grayscale HYPE ETF ($GHYP), first filed March 20, 2026. - How many HYPE ETFs are live? Two: 21Shares' THYP on Nasdaq and Bitwise's BHYP on NYSE; Grayscale's $GHYP is pending. - How much has flowed into HYPE ETFs? $74.91 million in cumulative net inflows as of May 22, 2026, with $89.20 million in combined net assets. - Why does the amendment matter? Prior revisions included a move to Anchorage Digital Bank as custodian and potential staking language, signaling meaningful structuring decisions. - Can HYPE reach $100? From $54.95, $100 implies roughly 82% upside; the newsletter cites ETF inflows, staking activity, buybacks, and Arthur Hayes' public target of $150 by August 2026, while flagging risks including CME/NYSE regulatory pressure, a June 6 token unlock, and broader market conditions. Not financial advice.