Introduction
The cryptocurrency world is buzzing with news about Grayscale’s latest move. The firm recently registered the Hyperliquid (HYPE)-linked statutory trust in Delaware—signaling its interest in joining the Spot HYPE ETF race. With big players like Bitwise, VanEck, and 21Shares already in the mix, Grayscale’s involvement raises an intriguing question: Can this ETF announcement spark a short-term price recovery for HYPE?
Understanding the HYPE ETF Potential
Market experts believe that if HYPE becomes an ETF-listed asset, it could mark a turning point in the altcoin’s journey. Institutional investors, buybacks, and corporate treasuries could collectively drive significant demand. However, the immediate impact on weak market sentiment remains uncertain. HYPE’s price trajectory has seen noticeable volatility, having surged by 18% to $28 in early 2026 before erasing most gains.
Ongoing Challenges for HYPE
The cryptocurrency market sentiment surrounding HYPE remains tepid, primarily attributed to monthly token unlocks, whale sell-offs, and competition from emerging decentralized exchanges like Lighter and Aster. This has caused HYPE’s sentiment to hover between “fear” and “extreme fear” levels, even as the project completed a net-positive burn of 80,000 HYPE tokens within 24 hours—three times higher than the staking rewards of 26,700 tokens.
According to trader Altcoin Sherpa, “Hyperliquid is expected to lead the market eventually, but it might take time. For now, emerging competitors seem better positioned.”
Signs of Recovery
Though sentiment is weak, there are some glimmers of hope for HYPE enthusiasts. The Spot Taker CVD (Cumulative Volume Delta) turned positive for the first time since last May, signaling active dip-buying in the spot markets. These are crucial indicators that recovery might be on the horizon if broader market sentiment reverses.
The $28 resistance level—now coinciding with the 50-day moving average—remains a critical hurdle for HYPE to overcome. A successful flip to support would boost confidence in sustained recovery. Otherwise, dips to $23 or $22 levels remain likely in the short term.
Explore the Latest Crypto Tools
To better understand market movements and make informed decisions, consider using portfolio tracking tools or apps like the CoinGecko Portfolio Tracker. Such resources can provide insights on token performance and help navigate crypto investments smarter.
Conclusion
While Grayscale’s ETF announcement adds excitement to HYPE’s future, the road to solid recovery remains steep. With ongoing buybacks, competitive pressures, and volatile investor sentiment, HYPE holders must stay cautious in their approach. However, if market confidence flips, this budding altcoin could still surprise investors in the long haul.
