10-Q: 21Shares Hyperliquid ETF Q1 2026 Financial Report

The 21Shares Hyperliquid ETF (THYP) reports no operational activity for the quarter ended March 31, 2026, following the redemption of initial seed shares.

Summary

• The Trust was formed on July 24, 2025, and changed its name to 21Shares Hyperliquid ETF on October 27, 2025.
• The Trust had no operations during the period from March 18, 2026, through March 31, 2026, other than the initial seed capital transaction and subsequent redemption.
• Initial seed capital of $100 was raised on March 18, 2026, through the sale of two shares at $50.00 per share.
• The initial seed shares were redeemed for cash on March 23, 2026, resulting in zero shares outstanding as of March 31, 2026.
• The Trust is an emerging growth company and intends to take advantage of extended transition periods for new accounting standards.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral, routine filing for a newly formed entity that had not yet commenced active trading during the reporting period.

Positives

• The Trust has successfully established its operational structure, including the appointment of custodians (Anchorage Digital Bank N.A. and BitGo Bank & Trust, N.A.) and service providers.
• The Trust has a clear investment objective to track the performance of HYPE via the FTSE Hyperliquid Index.
• The Sponsor has established a staking model intended to generate additional yield for shareholders, subject to regulatory and tax considerations.

Negatives

• The Trust had no assets or liabilities as of March 31, 2026.
• There were no shares outstanding as of the end of the reporting period.
• The Trust has not yet commenced significant operations as of the reporting date.

Risks

• Concentration risk: The Trust invests solely in HYPE, meaning any decline in the value of HYPE will directly and negatively impact the Trust's net asset value.
• Regulatory risk: The evolving legal and regulatory landscape for digital assets and staking could adversely affect the Trust's operations or its status as a grantor trust.
• Tax risk: There is a risk of adverse regulatory or legal determinations regarding the tax treatment of staking within a grantor trust.
• Liquidity risk: Staking activities involve lock-up periods that could limit the Trust's ability to meet redemption requests.
• Operational risk: The Trust relies on third-party custodians and service providers, and any failure in their systems could impact the Trust.

Future Outlook

The Trust intends to track the performance of HYPE, adjusted for expenses, and may engage in staking activities to generate additional rewards for shareholders, provided the Sponsor determines it can be done without undue legal or regulatory risk.

Management Comments

• Management believes the financial statements fairly present the financial position of the Trust for the period.
• The Sponsor intends to stake between 30% and 70% of the HYPE held by the Trust, subject to liquidity needs.

Industry Context

StockSavvy.ai notes that this filing represents the early-stage setup of a single-asset crypto ETF, following the broader industry trend of institutionalizing digital asset exposure through regulated exchange-traded products.

Comparison to Industry Standards

• The Trust's structure as a grantor trust is consistent with other spot digital asset ETFs currently trading in the U.S. market.
• The 0.30% unitary sponsor fee is competitive with existing digital asset ETPs.
• The inclusion of a staking mechanism differentiates this product from standard spot-only digital asset ETFs.

Corporate Governance

Legal Proceedings

• None.

Related Party Transactions

• The Sponsor (21Shares US LLC) is a related party and manages the Trust.
• The Sponsor purchased and subsequently redeemed initial seed shares.

Stakeholder Impact

• Shareholders are subject to the performance of HYPE and the risks associated with the Trust's staking model.
• Authorized Participants are responsible for the creation and redemption process.

Next Steps

• Continuous issuance and redemption of Creation Baskets.
• Ongoing management of HYPE holdings and potential staking activities.
• Quarterly payment of Sponsor fees in HYPE.
• Potential quarterly cash distributions to shareholders from staking rewards.

Key Dates

Keywords

21Shares, Hyperliquid, THYP, ETF, Cryptocurrency, Staking, Digital Assets, Grantor Trust