VanEck Eyes Hyperliquid ETF as $HYPE Rallies Into Price Discovery

VanEck asset manager is paying more attention to Hyperliquid, a rising decentralized exchange (DEX). The company plans to file for a U.S.-listed Hyperliquid ETF and hopes to satisfy the increased demand for decentralized finance (DeFi) products.

As HYPE price rallies to new highs, VanEck believes the ETF could further cement Hyperliquid’s position in the crypto market.

VanEck Push for a Hyperliquid ETF, HYPE Price to Rally?

In a recent filing, VanEck confirmed its plan to launch a spot staking Hyperliquid ETF in the U.S. The firm decided to pursue the ETF due to growing demand for decentralized financial products.

According to VanEck executives, the launch will allow U.S. investors easier access to the HYPE token. Matt Maximo, the senior digital assets analyst, highlighted the value of Hyperliquid to the firm’s strategy. He observed that the expansion of the decentralized exchange is consistent with larger trends in DeFi adoption.

Additionally, Hyperliquid exchange gained much attention because of its better performance in network revenue compared to several other blockchains. Recent statistics indicated that Hyperliquid was among the industry leaders in network revenue for consecutive weeks.

This performance and its decentralized governance model drew large institutional backing. VanEck CEO Jan van Eck praised Hyperliquid’s technology for its ability to make billions of trades and cause few disruptions in a short period.

Regulatory Challenges and Global Expansion Plans

The decision by VanEck to develop a Hyperliquid ETF will depend on securities commission approval by the U.S. Securities and Exchange Commission (SEC). THE US SEC has been very conservative in its position on staking ETFs, as the body has not approved an Ethereum staking ETF.

However, VanEck remained optimistic that the approval of the Hyperliquid ETF would happen as the demand for DeFi products increased. In the meantime, VanEck is also working on an equivalent exchange-traded product (ETP) for the European market, where crypto regulations are generally more flexible.

In conjunction with the thrust of a U.S. ETF, VanEck is deliberating on repurchasing a part of the net profit of its investment products using HYPE tokens. This would further increase the price of HYPE, because buybacks can create more demand for the token.

The buybacks would also be consistent with Hyperliquid’s existing policy of buying back almost all of its platform revenue from token purchases. Such activities will accompany the projected ETF launch and initiate additional appeal in the HYPE token.

HYPE Price Surge and Market Position

Amid the ETF news, HYPE price has been on an impressive rally, with the altcoin surging 25% over the past month. This increase brought the token to $56 before slightly falling at press time. The HYPE token’s recent movements have put it in competition with other leading cryptocurrencies.

HYPE’s price upward momentum is reflected in its technical patterns. The token recently broke out of a resistance level at $49.88, completing a bullish ascending triangle formation.

Also, the 1-day price chart for Hyperliquid (HYPE) revealed a Parabolic Stop and Reverse (SAR) pattern, which showed a clear shift in trend direction. This chart showed that the SAR dots are lower than the price action, implying a bullish momentum.

The trend is a sign of good purchasing power and a possible continuity of bullish momentum.

In addition, the chart showed positive momentum on Moving Average Convergence Divergence (MACD). The MACD line, above the signal line, affirmed the bullish trend, meaning that market trends support the rising price movement.

Moreover, the rising bars in the histogram indicated increasing pressure to buy, suggesting that the bullish trend might persist ahead of the VanEck Hyperliquid ETF plans.