Grayscale has submitted a second amended registration statement, known as an S-1, for a proposed Hyperliquid staking exchange-traded fund (ETF) in the United States. The filing, which updates the fund's prospectus, comes after an earlier fourth amendment that raised the investment objective of the product. The move signals Grayscale's continued push to bring a crypto staking ETF to market, even as regulators weigh the structure and risks of such instruments.
Revised registration statement
The latest S-1 amendment refines the details of the Hyperliquid staking ETF, though Grayscale has not publicly detailed every change from the prior version. The filing follows a fourth amendment that included an increase in the fund's investment objective — a key shift that suggests the asset manager is aiming for a broader or more aggressive strategy with the product. The S-1 is the standard form used to register new securities with the U.S. Securities and Exchange Commission (SEC). Each amendment brings the fund closer to a potential launch, pending regulatory approval.
What a staking ETF does
A staking ETF would allow investors to gain exposure to a digital asset — in this case, Hyperliquid's token — while also earning rewards from staking. Staking involves locking up tokens to help secure a proof-of-stake blockchain network, and validators are paid in new tokens. Wrapping that yield into an ETF product is relatively new. The SEC has approved several bitcoin and ether ETFs, but staking features have been a sticking point. The agency has asked issuers to remove staking from proposed ether ETFs in the past, citing concerns about the legal status of staking and how it fits under securities laws.
Grayscale's Hyperliquid filing suggests the company is trying to address those concerns — or is betting that the regulatory climate has shifted. The fund would track the price of Hyperliquid's native token, and the staking component would generate additional returns for shareholders. Whether the SEC will allow a staking ETF remains an open question, but Grayscale's repeated amendments show it's not backing away.
Grayscale's broader ETF strategy
Grayscale is no stranger to the ETF arena. The firm successfully converted its flagship Grayscale Bitcoin Trust into a spot bitcoin ETF earlier this year after a lengthy legal battle with the SEC. It also launched a spot ether ETF in July. The Hyperliquid staking ETF would be a different play — it's not a conversion of an existing trust, but a wholly new product built around a smaller, lesser-known blockchain token. Hyperliquid is a decentralized exchange and layer-1 blockchain that uses its own token for fees and staking. Grayscale appears to be betting that investor appetite for staking yield will outweigh regulatory caution.
The company has not announced a ticker symbol or a management fee for the Hyperliquid ETF. A prospectus filed with the SEC would disclose those details once the registration is declared effective. The SEC's review process typically takes months, and the agency can issue comments or request further changes before allowing the fund to begin trading.
What comes next
The SEC will now review the second amended S-1. Grayscale may need to file additional amendments if the agency raises new questions. If the regulator clears the registration, the Hyperliquid staking ETF could launch on a national exchange — likely Arca, which Grayscale has used for its other crypto ETFs. An exact timeline is unclear, but the pattern of amendments suggests Grayscale is working through the SEC's feedback step by step. For now, the filing is the latest sign that asset managers are willing to keep pushing staking ETFs, even if the path to approval remains narrow.
