Top Institutional Investors in Hyperliquid ETFs
Leading financial institutions including UBS, Bank of Montreal (BMO), and trading firm Jane Street have disclosed significant holdings in the newly launched Hyperliquid ETF products listed in the US. A review of first-quarter 13F filings shows growing institutional engagement with these emerging crypto asset funds.
Wealth High Governance Asset Management reported nearly 632,614 shares in 21Shares' HYPE fund as of June end, valued at approximately $23.95 million—surpassing UBS, BMO, and Ping An Securities holdings. Montreal-based OLP Capital Management holds about $10.5 million. UBS ranks third, with approximately $7.5 million in holdings. BMO and Jane Street follow with about $6.7 million and $4.4 million respectively.
Additional investors include Discovery Capital, Brevan Howard, Balyasny, and Boothbay. Smaller stakes come from Royal Bank of Canada and Tower Research Capital, holding roughly $22,000 and $1,100 respectively. Combined, the top five institutions represent 70.8% of total reported assets in these ETFs, totaling around $53 million out of $74.9 million disclosed.
Scope of Reporting and Market Context
It is important to note that quarterly reports capture holdings only at the reporting period's close and do not account for subsequent trades. Some bank holdings may include client assets, and trading firms could hold offsetting hedge positions. Reporting requirements under SEC Rule 13F apply to institutions managing over $100 million, so these figures do not encompass all investors.
21Shares was the pioneer ETF issuer, launching the initial Hyperliquid fund (THYP) on May 12. Bitwise followed with BHYP on May 15, and Grayscale introduced HYPG on June 3. These ETFs trade like standard equity funds, allowing investors easy access to the Hyperliquid platform’s native token HYPE exposure through typical brokerage accounts.
Data from SoSoValue shows these three ETFs attracted net inflows totaling approximately $357 million by September 4, with total assets under management reaching $481 million. Notably, Bitwise’s BHYP saw a $10.52 million inflow on September 4 alone.
Regulatory Landscape and Platform Overview
Hyperliquid operates as a decentralized perpetual futures exchange on an independent blockchain, offering contracts with no expiry, suited for diverse trading strategies. The platform currently restricts access for US users, although the former Trump administration signaled intentions to integrate Hyperliquid products into the US market.
Payward, Kraken’s parent company, is collaborating with the US Commodity Futures Trading Commission (CFTC) to potentially launch regulated Bitnomial-branded perpetual futures products referencing Hyperliquid assets. This would provide compliance-compliant futures trading access to US clients leveraging Hyperliquid’s technology, though formal details remain pending.
In summary, Hyperliquid ETFs have garnered considerable institutional capital, with the expanding regulatory framework likely to enhance product accessibility and acceptance. Market participants will continue to monitor regulatory developments and institutional flows as Hyperliquid’s ecosystem evolves.