Grayscale Designates BitGo as Additional Custodian for Hyperliquid ETF Holdings

Grayscale filed an SEC Form 8-K on October 5, 2026, reporting that BitGo Bank & Trust has been added as an additional custodian for HYPE token holdings in its Hyperliquid Staking ETF, effective September 30, 2026. The HYPG fund held approximately $217.8 million in assets under management with 88.66% of assets staked, generating average gross staking rewards of 2.26% before fees. The diversified custodial arrangement enhances security and operational flexibility for the fund, which charges a competitive management fee of 0.29%.

Grayscale's HYPG fund has grown to manage $217.8 million since launching in June 2026, positioning itself as a low-cost entry point for investors seeking exposure to Hyperliquid's native token. The fund's operational structure locks roughly 89% of holdings into staking activities, which generate network rewards while supporting the Hyperliquid ecosystem's validation infrastructure. By adding BitGo as a second custodian, Grayscale distributes operational and security responsibilities across providers, a prudent measure for a fund whose entire asset base concentrates in a single cryptocurrency token.

The addition of BitGo represents Grayscale's response to competitive pressure in the emerging HYPE ETF market, where 21Shares and Bitwise offer comparable products at marginally higher fees. This custodial expansion may signal confidence in Hyperliquid's maturity while addressing institutional concerns about single points of failure in crypto asset custody and staking operations.