We advised Grayscale on the Nasdaq listing and concurrent HYPE investment

Davis Polk advised Grayscale Investments on the successful listing of Grayscale Hyperliquid Staking ETF, among the first HYPE exchange-traded funds (ETFs) to trade in the United States. Supported by an institutional staking program, Grayscale Hyperliquid Staking ETF offers investors exposure to HYPE, the native token of the Hyperliquid protocol, and staking rewards generated through the network. Shares of the ETF are listed on Nasdaq under the ticker “HYPG.”In connection with the listing, Davis Polk also advised Grayscale in negotiating an agreement with Hyper Holdings Global LP to invest approximately 2 million HYPE tokens (valued at approximately $150 million) in exchange for shares of the ETF.

Launched in 2024, Hyperliquid has emerged as one of the most advanced decentralized blockchains in the industry. The protocol is designed to expand into a broader system that functions as a smart contract platform and as a venue for deploying and trading new markets within a single integrated environment. Hyperliquid’s high-revenue decentralized finance protocol and fee-driven token buyback model position it to become a core piece of on-chain financial infrastructure.

The Davis Polk capital markets team included partners Joseph A. Hall and Daniel P. Gibbons, counsel Dylan H. Lojac and associate Sean Kennelly. Partner Zachary J. Zweihorn, counsel Justin Levine and associates Boaz B. Goldwater and Abigail Barney provided financial institutions advice. Partners Patrick E. Sigmon and Lucy W. Farr and associate Seth Cole provided tax advice. The investment management team included partner Gregory S. Rowland. Members of the Davis Polk team are based in the New York and Washington DC offices.

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