Warning! The crypto sphere has another bombshell news, 90% of people are still unaware that this wave of market might directly rewrite the landscape of on-chain derivatives - Grayscale has officially submitted the S-1 application for the HYPE ETF, intending to list on NASDAQ under the code GHYP, and it will be custodied by Coinbase Custody. Is this just short-term speculation, or is it a signal to start a whole new track? 🔥
You need to know what level Grayscale exists at. It is the 'industry benchmark' that brings Bitcoin trusts into mainstream view and promotes the compliance of BTC ETFs. This time, it has not chosen the already mature BTC or ETH, but instead bet on the core target of the on-chain derivatives track - Hyperliquid (HYPE), the largest on-chain perpetual contract DEX currently, being selected by Grayscale is itself the strongest endorsement for the entire on-chain derivatives track!
Many are still struggling with 'whether to chase this wave,' but they overlook a key signal: Every step Grayscale takes is following the direction of institutional funds. By mid-2025, Bitcoin options open interest is expected to exceed $65 billion for the first time, surpassing futures, indicating a surge in institutional demand for 'controlled risk derivative tools,' while the market share of on-chain derivatives has already soared from 2% two years ago to 10%. The signs of an impending explosion have long been evident.
The approval of this HYPE ETF application is by no means a coincidence:
✅ Compliance thresholds further lowered: Once Grayscale's ETF is approved, traditional financial capital will have a compliant and convenient channel to directly invest in on-chain derivatives, without having to go around in circles. This will bring in massive incremental funds, just like when the BTC ETF was approved and institutional funds rushed in.
✅ Track value is being re-evaluated: As a leader in on-chain perpetual contracts, Hyperliquid, whose native token HYPE is being eyed by Grayscale, means that on-chain derivatives are no longer the 'playground of retail investors and scientists' but have officially entered the institutional view. It is important to note that JPMorgan has pointed out that geopolitical fluctuations are driving a boom in 24-hour oil trading on Hyperliquid, and on-chain derivatives are absorbing the trading demand of traditional commodities, with potential that is immeasurable.
✅ The industry landscape is about to change: Previously, although on-chain derivatives experienced growth, they lacked mainstream institutional endorsement. Grayscale's entry will lead more traditional financial giants to follow suit. Currently, on-chain options protocols like DeriveXYZ and KyanExchange have already made technical breakthroughs, zero fuel fees, sub-second trading, and a portfolio margin system, all of which are narrowing the gap with centralized exchanges. Grayscale's participation will accelerate this replacement process.
Some may ask: Will the fact that HYPE ETF currently does not support staking affect its attractiveness? On the contrary, this is Grayscale's 'steady layout'—first opening the market through a compliant spot ETF, and later, based on regulatory requirements, opening staking, which not only avoids compliance risks but also reserves space for future growth, demonstrating its long-term optimism for this track rather than short-term speculation.
More importantly, the regulatory environment is continuously improving. The US SEC and CFTC jointly announced allowing regulated exchanges to conduct spot cryptocurrency trading, and CME will launch around-the-clock cryptocurrency options trading on May 29, which provides a clear compliance framework for the development of on-chain derivatives. Grayscale's entry at this time precisely aligns with the dual momentum of regulation and market.
Back to the core logic of the crypto circle: Wherever the hotspots are, the funds will be, and the opportunities will be. Grayscale's powerful move essentially 'stamps' the on-chain derivatives track, telling everyone: This track has already moved from 'niche pilot' to 'mainstream explosion' stage.
Finally, a soul-searching question, which is also what Binance Square's old friends care about most: Do you think HYPE ETF will be approved smoothly? Will the on-chain derivatives track become the next hundredfold opportunity? Leave your thoughts in the comments, like and collect, let's wait for this wave of compliance dividends together. Don’t miss the BTC ETF, and don’t miss the explosion of on-chain derivatives!