HYPE Staking ETF Fee Competition: How HYPG, THYP, and BHYP Reshape On-Chain Revenue Landscape

From May to June 2026, the U.S. ETF market experienced a special "listing race." 21Shares, Bitwise, and Grayscale each launched three staking ETFs based on Hyperliquid (HYPE) as the underlying asset—THYP, BHYP, and HYPG—in less than a month. This marked a milestone event following the approval of Bitcoin spot ETFs in 2024, signifying the extension of crypto financial products into the "application layer tokens."

Unlike previous BTC and ETH ETFs, the core difference of HYPE ETFs lies not only in their underlying assets but also in their built-in staking yield mechanism. All three products allocate part of their holdings to on-chain staking, with a historical annualized yield of about 2.2%. This means investors can indirectly earn staking rewards from the HYPE network by purchasing ETFs through traditional brokerage accounts, without managing private keys or handling complex on-chain operations.

However, the three products differ significantly in fee structures, staking reward distribution mechanisms, and asset sizes.

Overview of Core Metrics for the Three HYPE Staking ETFs

| Metric | THYP (21Shares) | BHYP (Bitwise) | HYPG (Grayscale) | | --- | --- | --- | --- | | Listing Date | May 12, 2026 | May 15, 2026 | June 3, 2026 | | Listing Exchange | Nasdaq | NYSE | Nasdaq | | Management Fee | 0.30% | 0.34% (0% promotion first month) | 0.29% | | AUM (as of early June 2026) | approx. $75.8 million | approx. $71.1 million | approx. $192 million | | Staking Annualized Yield (historical reference) | approx. 2.2% | approx. 2.2% | approx. 2.2% | | Staking Yield Distribution Mechanism | Net income included in NAV | After 25% service fee, distributed | Included in NAV | | Custodian | Anchorage Digital Bank, BitGo | Self-custody (on-chain infrastructure) | Institutional custody |

Fee Comparison: From Zero-Sum to Price War

Fees are one of the most direct decision variables for investors choosing ETFs. Among the three HYPE ETFs, the competitive landscape of fees has evolved rapidly from "first-mover pricing" to "counterattack by latecomers."

21Shares THYP was the first to list on Nasdaq on May 12, 2026, with a management fee of 0.30%. As the first HYPE staking ETF listed in the U.S., THYP enjoyed a roughly three-day "monopoly period," during which there were no direct competitors.

Bitwise BHYP listed on NYSE three days later (May 15), adopting a more aggressive pricing strategy: a 0% management fee for the first month, then increasing to 0.34%. This "free first month" promotion is uncommon in the ETF industry, aiming to quickly build initial assets and attract cautious investors with short-term zero costs.

Grayscale HYPG entered last on June 3, 2026, pricing at 0.29%, directly lowering the market ceiling and becoming the ETF with the lowest fee among U.S. HYPE ETFs. Grayscale previously faced large outflows in Bitcoin ETF competition due to high fees (GBTC maintained 1.5%-2.5% long-term). This time, choosing the lowest fee reflects a strategic shift—from brand premium to cost competition.

In absolute terms, the difference between 0.29% and 0.30% is just one basis point (0.01%). For a $10k investment, the annual fee difference is only $1. But this one basis point signals a significant price war, far beyond actual cost impact. In the ETF industry, once fees are lowered, there is little room for reversal—Grayscale’s pricing effectively sets a long-term upper limit for the entire HYPE ETF category.

Staking Yield: The 2.2% Historical Benchmark and Distribution Differences

One core function of these ETFs is earning additional yield through on-chain staking. According to data from stakingrewards.com cited by Grayscale, HYPE’s historical annualized staking yield is about 2.2% (covering May 2025 to April 2026). Other sources suggest this range fluctuates between 2.2% and 2.3%.

While the underlying on-chain yield sources are the same across all three products, the mechanisms for distributing staking rewards differ, and these differences will accumulate over longer holding periods.

THYP (21Shares)’s staking rewards, after deducting fees paid to third-party staking service providers and sponsors, are daily accrued into the ETF’s net asset value (NAV). 21Shares has not disclosed specific third-party fee ratios but emphasizes that staking involves operational, technical, regulatory, and counterparty risks.

BHYP (Bitwise) has a clear fee structure: a 33% fee on the staking rewards generated, meaning the ETF retains 33% to cover operational costs, with the remaining 67% returned to investors. Some reports mention a 25% fee, meaning the ETF retains 25%, and investors receive about 75%. This transparency is relatively prominent among similar products, but note that the "service fee" is deducted before distribution, so the net yield directly affects investors’ actual additional returns.

HYPG (Grayscale) also includes net staking rewards in the fund’s NAV, with details of the fee structure not fully disclosed in public documents, but the overall operating fee is incorporated into the 0.29% management fee.

Overall, in terms of actual net return from staking, BHYP’s explicit fee deduction (25%-33%) results in slightly lower net yields compared to THYP and HYPG, which include rewards directly in NAV. However, the long-term compounding effect may influence the net asset value differences.

Listing Timing and Scale Effects

21Shares THYP was established on May 11, 2026, and began trading on Nasdaq on May 12. As the first mover, THYP gained significant attention and trading volume early on. According to YCharts data, by 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 data shows its AUM was around $104 million, with some sources reporting between $10k and $64.5 million, and multiple reports indicating assets exceeded $100 million by late May. Notably, Bitwise’s research head publicly stated in late May that “BHYP is now the largest HYPE ETF globally.” This statement aligns with THYP’s AUM at the time, though data discrepancies exist. By early June, both THYP and BHYP’s AUMs are in the $70 million to $100 million range, with little difference overall.

Grayscale HYPG launched last on June 3, but leveraging Grayscale’s brand and the lowest fee of 0.29%, it attracted about $299 million in net inflows on the first day, reaching an AUM of approximately $192 million. This indicates that despite being the latest to market, HYPG’s AUM has already surpassed that of the two earlier-listed competitors by a large margin. This phenomenon shows that in the crypto ETF space, "first-mover advantage" is not insurmountable; long-term reputation and fee competitiveness are often more decisive.

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

What the 2024 Bitcoin ETF Fee War Taught Us

In January 2024, the U.S. SEC approved the first 11 Bitcoin spot ETFs, sparking a fee competition. The evolution of this "fee war" provides important reference for current HYPE ETF competition.

The basic trajectory of the fee war is highly similar: early products tend to have mid-to-high fees; new entrants lower fees to gain market share; once fees are reduced, they are hard to raise again. In 2024, Bitwise’s 0.20% fee made it the lowest-cost product, while Grayscale’s GBTC had a 2.0% fee before conversion and 1.5% after, far above the industry average.

Fund flows and fee levels offer the clearest empirical evidence. In 2024, GBTC’s high fees led to over $20 billion in outflows, while BlackRock’s IBIT (0.25%) attracted over $46 billion in net inflows. This comparison reveals a key rule: in a highly homogeneous product category with the same underlying asset (BTC or HYPE), investors prefer the lowest-cost options.

Brand effects have limitations. Despite Grayscale’s status as the largest crypto asset manager globally, its high fee strategy did not prevent massive outflows in Bitcoin ETF competition. This lesson is reflected in HYPG’s pricing strategy—Grayscale’s current approach with a 0.29% fee makes it a fee leader rather than a follower.

Differentiation strategies. As the Bitcoin ETF fee war intensifies, some issuers explore differentiation through staking rewards, segmentation strategies, and other value-added features. This is the fundamental difference between HYPE ETFs and Bitcoin ETFs—the staking mechanism offers additional value beyond passive tracking. The competition for HYPE ETFs extends beyond fees into reward distribution structures and custody solutions.

Conclusion

The coexistence of three HYPE staking ETFs offers investors multiple dimensions for comparison and choice. Currently, Grayscale HYPG (0.29%) has a cost advantage, with THYP (0.30%) close behind, and Bitwise BHYP (0.34% first month) at a higher level but with the most transparent staking fee structure. While all three share a similar underlying yield (~2.2%), differences in distribution methods and fee structures will only manifest over long-term holdings. In terms of AUM, Grayscale’s brand and pricing strategy have enabled it to leap ahead, but THYP and BHYP’s early market presence has also built a solid foundation.

Historical experience shows that once a fee war begins, it’s difficult to reverse, but differentiation remains possible. 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 that in environments with fully homogeneous underlying assets, fees are decisive; but when product features differ, investor choices become more diverse.

For investors considering HYPE ETFs, it is recommended to choose based on their holding period and cost sensitivity: short-term holders may focus on promotional fee periods (like BHYP’s first-month zero fee); long-term investors should evaluate the long-term impact of management fees and net staking yields; those prioritizing brand reputation and liquidity should consider Grayscale HYPG’s AUM advantage. More importantly, regardless of the product selected, investors should fully understand the underlying business model of the HYPE network and the risks associated with staking activities—staking rewards are not risk-free returns but a form of asset appreciation accompanied by technological, operational, and regulatory uncertainties.