HYPE Staking ETF Fee Competition: How HYPG, THYP, and BHYP Are Reshaping On-Chain Yield Dynamics

Between May and June 2026, the US ETF market witnessed a unique "listing race." Within less than a month, 21Shares, Bitwise, and Grayscale each launched a staking ETF based on Hyperliquid (HYPE)—THYP, BHYP, and HYPG, respectively. This marked a pivotal moment for crypto financial products, signaling their expansion from Bitcoin spot ETFs approved in 2024 to "application-layer tokens."

Unlike previous BTC and ETH ETFs, the core distinction of the HYPE ETF lies not only in its underlying asset but also in its built-in staking yield mechanism. All three ETFs allocate a portion of their holdings to on-chain staking, with a historical annualized yield of about 2.2%. This means investors can access HYPE network staking rewards simply by purchasing the ETF through traditional brokerage accounts—no need to manage private keys or navigate complex on-chain operations.

However, the three ETFs differ significantly in their fee structures, staking yield distribution mechanisms, and asset sizes.

Overview: Key Metrics Comparison for the Three HYPE Staking ETFs

Fee Comparison: From Zero-Sum Game to Price War

Fees are one of the most direct decision factors for ETF investors. Among the three HYPE ETFs, fee competition quickly evolved from "first-mover pricing" to "latecomer counterattack."

21Shares THYP debuted on Nasdaq on May 12, 2026, with a management fee set at 0.30%. As the first HYPE staking ETF listed in the US, THYP enjoyed about three trading days of exclusivity, with no direct competitors during that period.

Bitwise BHYP launched three days later (May 15) on NYSE, adopting a more aggressive pricing strategy: a 0% management fee for the first month, then rising to 0.34%. This "first-month free" promotion is uncommon in the ETF industry and aims to rapidly build initial AUM, leveraging zero-cost to attract investors who might be on the fence.

Grayscale HYPG entered last, on June 3, 2026, and set its fee at 0.29%, directly lowering the market ceiling and becoming the lowest-cost HYPE ETF in the US. Grayscale previously suffered significant outflows in the Bitcoin ETF space due to high fees (GBTC maintained 1.5%-2.5% for years). This time, Grayscale’s lowest-fee entry reflects a strategic shift—from brand premium to cost competition.

In absolute terms, the difference between 0.29% and 0.30% is just 1 basis point (0.01%), or $1 per $10,000 invested per year. However, the signal sent by this price war is far more important than the actual cost impact. In the ETF industry, once fees are lowered, they rarely rise again—Grayscale’s pricing essentially sets a long-term ceiling for the entire HYPE ETF category.

Staking Yield: 2.2% Historical Benchmark and Distribution Differences

A core feature of all three ETFs is generating additional yield through on-chain staking. According to Grayscale’s official citation of stakingrewards.com, HYPE’s historical annualized staking yield is about 2.2% (from May 2025 to April 2026). Other sources indicate the range fluctuates between 2.2% and 2.3%.

While the underlying on-chain yield source is the same for all three products, the mechanisms for distributing staking rewards differ, and these differences accumulate over time.

THYP (21Shares) credits net staking yield to the ETF’s NAV daily, after deducting third-party staking service provider fees and sponsor fees. 21Shares has not disclosed the exact third-party service fee rate but notes that staking involves operational, technical, regulatory, and counterparty risks.

BHYP (Bitwise) has a clear fee structure: the staking service fee is 33% of generated HYPE, meaning the ETF retains 33% of staking rewards for operational costs, and the remaining 67% goes to investors. Some sources mention a 25% fee (ETF retains 25%, investors receive ~75%). This transparency stands out among peers, but it’s important to note the "service fee" is deducted before distribution, so the net yield directly affects investors’ actual extra returns.

HYPG (Grayscale) also adds net staking yield to the fund’s NAV. The detailed fee structure is not publicly disclosed, but overall operating fees are included in the 0.29% management fee.

Overall, BHYP’s net yield is slightly lower than THYP and HYPG due to explicit service fee deductions (25%-33%), but this difference only becomes apparent in NAV over longer holding periods due to compounding effects.

Listing Timeline and Scale Effects

21Shares THYP was established on May 11, 2026, and began trading on Nasdaq on May 12. As the first mover, THYP attracted significant attention and trading volume early on. According to YCharts, as of early June 2026, THYP’s AUM was about $75.8 million.

Bitwise BHYP was established on May 14 and started trading on NYSE on May 15. Early Bitwise data showed AUM around $104 million, with some sources reporting between $30.5 million and $64.5 million. Multiple reports indicated BHYP’s AUM surpassed $100 million in late May. Notably, Bitwise’s research director publicly stated in late May that "BHYP is the world’s largest HYPE ETF." This claim matched THYP’s AUM at the time, but given data discrepancies, AUM competition between the two remained tight. By early June, most sources showed THYP and BHYP both in the $70 million to $100 million range, with little overall difference.

Grayscale HYPG began trading on June 3, 2026, making it the latest entrant. Leveraging Grayscale’s brand and the lowest fee (0.29%), HYPG attracted about $299 million in net inflows on launch day, with AUM quickly reaching $192 million. This means that despite being the last to list, HYPG’s AUM far surpassed its two competitors who launched three weeks earlier. This phenomenon demonstrates that in the crypto ETF space, "first-mover advantage" is not insurmountable—brand reputation and fee competitiveness often play a decisive role.

As of early June 2026, the combined AUM of all three HYPE ETFs exceeded $330 million. Against the backdrop of capital outflows from Bitcoin and Ethereum ETFs, this performance reflects institutional investors’ structural interest in HYPE as an "application-layer token."

Lessons from the 2024 Bitcoin ETF Fee War

In January 2024, the US SEC approved the first batch of 11 Bitcoin spot ETFs, sparking a fierce fee competition. The trajectory of this "fee war" provides a valuable reference for current HYPE ETF competition.

The basic pattern of fee wars is highly similar: first movers typically price at mid-to-high levels; new entrants compete for market share with lower fees; once fees drop, they rarely rise again. In the 2024 Bitcoin ETF space, Bitwise’s 0.20% fee made it the lowest-cost product, while Grayscale’s GBTC charged 2.0% before conversion and remained at 1.5% after, far above industry averages.

The relationship between capital flows and fees offers the clearest empirical evidence. In 2024, Grayscale GBTC saw over $20 billion in outflows due to high fees, while BlackRock’s IBIT (0.25% fee) attracted over $46 billion in net inflows. This contrast reveals a key rule: in highly commoditized crypto ETF categories, fee differences significantly impact capital flows. When the underlying asset (BTC or HYPE) is identical, investors prefer the lowest-cost product.

The limits of brand effect are also noteworthy. Despite being the world’s largest crypto asset manager, Grayscale’s high-fee strategy failed to prevent massive outflows in the Bitcoin ETF competition. This lesson is clearly reflected in HYPG’s pricing strategy—Grayscale now leads HYPE ETFs with a 0.29% fee, rather than following.

The direction of differentiated competition. As the Bitcoin ETF fee war intensified, some issuers began exploring differentiation, such as staking rewards and split custody strategies, to build competitive moats. This is the essential difference between HYPE ETFs and Bitcoin ETFs—staking mechanisms add value beyond passive tracking. HYPE ETF competition extends beyond fees to staking yield distribution and custody solutions.

Conclusion

The coexistence of three HYPE staking ETFs gives investors the opportunity to compare and choose across multiple dimensions. In terms of fees, Grayscale HYPG (0.29%) currently holds the cost advantage, closely followed by 21Shares THYP (0.30%), with Bitwise BHYP (0.34% after the first month) at the higher end, though BHYP’s staking fee structure is the most transparent. Regarding staking yield, all three products offer similar base rates (~2.2%), but differences in distribution and fee structures will only impact returns over longer holding periods. In terms of AUM, Grayscale’s brand and pricing strategy have enabled it to leapfrog competitors, but THYP and BHYP’s first-mover advantage has built a solid market foundation.

Historical experience shows that once a fee war starts, it’s hard to reverse, but there’s still room for differentiated competition. The innovation of HYPE ETFs lies in integrating "on-chain staking rewards" into the traditional ETF framework, allowing investors to gain both price exposure and yield enhancement in a single instrument. The 2024 Bitcoin ETF fee war teaches us: when underlying assets are fully commoditized, fees are the decisive variable; but when product features differ, investor decision logic becomes more diverse.

For investors considering HYPE ETFs, it’s advisable to choose based on holding period and fee sensitivity: short-term holders may benefit from promotional fee periods (such as BHYP’s first month at zero fee); long-term holders should weigh management fees and net staking yield over time; and those prioritizing brand reputation and liquidity may find Grayscale HYPG’s AUM advantage appealing. More importantly, regardless of the product chosen, investors should fully understand the underlying business model of the HYPE network and the risks associated with staking—staking rewards are not risk-free returns, but a form of asset appreciation accompanied by technological, operational, and regulatory uncertainties.