VanEck is preparing to launch its first spot-staking ETF for the HYPE cryptocurrency token in both the United States and Europe, aiming to bridge DeFi rewards with traditional finance.

If approved, this ETF would be a major milestone for Hyperliquid, boosting its ecosystem and attracting institutional investors, while extending VanEck’s track record of innovative crypto ETFs.

The ETF seeks to provide easier access for U.S. investors to HYPE tokens and could encourage major exchanges to list HYPE, expanding its market reach.

HYPE, the native token of Hyperliquid launched in 2023, has experienced rapid growth, recently hitting a new all-time high of around $55.34 and leading DeFi revenue charts for four consecutive weeks.

Hyperliquid’s strong market momentum and high network revenue make HYPE an attractive candidate for the ETF, with recent trading support around $55 and potential upside targets between $60 and $65.

VanEck is considering using a portion of the ETF’s profits for HYPE token buybacks to support its market value, reflecting confidence in Hyperliquid’s growth.

The trend of integrating staking income with traditional finance is part of a broader global movement, with similar products already existing in Europe and explorations underway in regions like Canada and Asia-Pacific.

Despite regulatory uncertainties, the ETF plans are progressing independently of Hyperliquid’s internal governance debates, including a separate stablecoin proposal by Agora.

The filings for the ETF are pending regulatory approval, with the U.S. SEC being a significant hurdle due to its slow approval process for staking-based crypto ETFs.

This move reflects growing Wall Street interest in blending DeFi projects with traditional investment structures, signaling increased institutional adoption of crypto assets.

VanEck’s CEO expressed strong support for Hyperliquid, praising its technology and decentralized governance, which has fueled speculation about the ETF plans.

The ETF initiative is separate from a bid for a Hyperliquid-aligned stablecoin, USDH, which involves a startup co-founded by VanEck’s son.

VanEck views this ETF as a potential turning point for crypto in traditional markets, making DeFi more accessible to a broader investor base.