Grayscale Hyperliquid Staking ETF

What they do

The Trust is a passive entity managed and administered by the Sponsor with no officers, directors or employees. It holds HYPE and issues 10,000-Share Baskets to Authorized Participants in exchange for HYPE deposits, while redeeming Shares through an ongoing redemption program. It stakes its HYPE via the Custodian and third-party staking providers to earn additional HYPE, and its objective is for Share value to reflect the HYPE held, including staking rewards, less expenses and liabilities. It does not use leverage, derivatives or similar arrangements.

Revenue drivers

• HYPE price appreciation — The primary driver of Share value is the market value of the Trust's HYPE holdings; the Trust's $127.1M in total assets as of 2026-06-30 are essentially HYPE exposure.
• Staking Consideration — Since June 3, 2026 the Trust stakes HYPE and earns additional HYPE as Staking Consideration; a portion goes to the Custodian, staking providers and the Sponsor's Staking Fee, with the remainder retained to increase Trust HYPE holdings.
• Creations and redemptions — The Trust issues Baskets of 10,000 Shares for HYPE deposits and redeems Shares from Authorized Participants, which changes the size of the HYPE base and the related fee-bearing asset base.
• Sponsor fees paid in HYPE — Expenses, including the Sponsor's Fee, are settled in HYPE; realized gains and losses are recognized when these obligations are settled.

Recent performance

As of June 30, 2026, the Trust reported total assets of $127.1M and total liabilities of $1,000. Shares of the Trust began trading on Nasdaq on June 3, 2026, following effectiveness of its registration statement on Form S-1, so the 10-Q covers an early, limited operating period. The Trust began staking its HYPE on June 3, 2026, under arrangements with the Custodian and certain third-party staking providers. A July 2, 2026 Form 8-K reported a director or officer change at the Trust.

Strategy

The Trust's stated objective is for the value of the Shares, based on HYPE per Share, to reflect the value of HYPE held by the Trust, including HYPE earned as Staking Consideration, determined by reference to the Index Price less expenses and other liabilities. It is designed to offer a cost-effective and convenient way to gain investment exposure to HYPE, though Shares are not a direct investment in HYPE. The Trust issues Baskets only in blocks of 10,000 Shares to Authorized Participants and has run an ongoing redemption program since June 2, 2026. Staking is conducted under arrangements with the Custodian and third-party staking providers. The Trust may distribute Staking Consideration in HYPE or cash from the sale of HYPE at the Sponsor's discretion, subject to the Trust Agreement.

Risks

• Concentration in HYPE — The Trust's assets are essentially all HYPE, so its value moves with a single digital asset's market price and network conditions.
• Staking variability — Staking Consideration depends on Hyperliquid Network conditions, protocol-level reward rates, the amount of HYPE held and the portion staked, and the Trust does not expect it to be earned at a consistent rate.
• Unstaking illiquidity — Staked HYPE may be inaccessible for a period required to un-stake and withdraw under Hyperliquid Network protocols, and the Trust depends on third-party staking providers to execute staking.
• Passive, no-management structure — The Trust is a passive entity with no officers or directors or employees, managed and administered entirely by the Sponsor, and it does not use leverage or derivatives to pursue its objective.

Outlook

Management does not provide forward guidance beyond describing the Trust's structure and objective. The Trust intends to continue passive holding of HYPE, staking through the Custodian and third-party providers, and issuing/redeeming Baskets under the ongoing program. The MD&A notes that Staking Consideration is not expected at a consistent rate, and it directs readers to risk factors and forward-looking statement disclaimers for factors that could cause actual results to differ.