Two New Trusts Registered in Delaware
Grayscale has officially registered two separate entities with the CSC Delaware Trust Company: entities 10465871 and 10465863. These legal structures typically constitute the first step before filing a formal ETF application with the Securities and Exchange Commission (SEC). The asset manager, which already oversees several billion dollars in crypto products, is betting on two tokens with very different profiles.
BNB, the native token of the Binance ecosystem, serves as the cornerstone of the world’s largest centralized exchange platform. It enables reduced trading fees, participation in token launches via Binance Launchpad, and powers the entire BNB Chain. With a market capitalization exceeding $80 billion, BNB ranks among the top five cryptocurrencies on the market.
HYPE, on the other hand, represents a bolder bet. This token powers Hyperliquid, a decentralized futures trading platform that stands out for its execution speed and liquidity. Hyperliquid has rapidly captured the attention of professional traders thanks to its on-chain order book and hybrid model combining performance with decentralization.
The Favorable Context for Crypto ETFs
This Grayscale initiative comes amid unprecedented institutional momentum. Spot Bitcoin ETFs have collected more than $30 billion since their launch in January 2024, while Ethereum ETFs have also recorded significant inflows despite a more modest start. These products have opened the floodgates of traditional finance toward cryptocurrencies, allowing institutional investors to gain regulated exposure without directly holding the assets.
The success of these first ETFs has created an important precedent. U.S. regulators, particularly the SEC, have gradually softened their stance on crypto products, even though each new application undergoes rigorous scrutiny. The approval of ETFs on major altcoins like BNB could mark a new phase of market maturation.
However, the path to approval remains fraught with obstacles. The SEC examines market manipulation, liquidity of underlying assets, and exchange platform surveillance. BNB, despite its significant market cap, faces regulatory questions related to Binance, while HYPE will need to prove its market maturity and stability.
What Are the Implications for the Crypto Market?
If these ETFs receive SEC approval, the consequences could be considerable. A BNB ETF would offer institutional investors direct exposure to the Binance ecosystem, which represents a significant share of global crypto trading volume. This could also strengthen the legitimacy of BNB Chain against Ethereum and Solana in the race for smart contracts.
For HYPE, the stakes are different but equally strategic. An ETF on this token would validate the model of next-generation decentralized exchanges and could attract institutional capital toward on-chain trading. Hyperliquid has already demonstrated its ability to handle significant volumes with minimal latency, a compelling argument to convince regulators of the project’s viability. This could cause its price to explode thanks to its buyback program.
In conclusion, Grayscale’s timing is not coincidental. With Trump’s election and a potentially more favorable political climate for cryptocurrencies, the asset manager may be anticipating a regulatory window of opportunity. Other players like BlackRock, Fidelity, or VanEck could quickly follow suit if these applications progress, creating a genuine race for altcoin ETFs.
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