UBS, Bank of Montreal and trading firm Jane Street have disclosed holdings in U.S. exchange-traded funds tied to Hyperliquid's HYPE token, a sign of growing institutional participation in the emerging regulated market for crypto investment products. Their appearance in the filings echoes the broader pattern seen since the January 2024 approval of U.S. spot Bitcoin ETFs, where traditional banks and market makers became early and recurring holders of crypto funds as regulated wrappers opened the asset class to clients who could not or would not hold tokens directly.

The disclosures were identified in quarterly filings reviewed by Bloomberg Intelligence analyst James Seyffart (post on X), which showed several major institutions holding shares across three U.S. funds linked to Hyperliquid.

Wealth High Governance Asset Management reported the largest disclosed position: its filing showed 632,614 shares of the 21Shares Hyperliquid ETF valued at nearly $24 million as of June 30. OLP Capital Management reported the second-largest position at approximately $10.5 million, followed by UBS with a holding valued at $7.5 million. Bank of Montreal reported approximately $6.7 million, while Jane Street disclosed a position worth $4.4 million. Together, the five institutions reported roughly $53 million in holdings across the funds.

Institutional Holdings Grow Across Hyperliquid ETFs

The filings provide only a partial picture of institutional ownership, because quarterly Form 13F disclosures — which institutional investment managers file with the U.S. Securities and Exchange Commission within 45 days of each quarter's end — do not capture every type of investor or transaction. The reports also reflect positions as of June 30, meaning trades conducted after that date are not included, and the filing requirements mean the available disclosures do not necessarily represent all institutional exposure to the funds.

Several factors can further complicate interpretation of the reported holdings. Positions disclosed by banks may include assets held on behalf of clients rather than investments made directly with the institutions' own capital. Trading firms such as Jane Street, which serves as an authorized participant or market maker across many ETFs, may also use derivatives to hedge ETF positions. As a result, a disclosed holding does not necessarily indicate a purely directional bet on HYPE's price. The filings nevertheless provide a window into institutional participation in U.S. investment products offering exposure to Hyperliquid.

Three U.S. Funds Offer Regulated HYPE Exposure

The U.S. Hyperliquid fund market expanded rapidly during the second quarter. 21Shares launched the THYP fund on May 12, making it the first U.S. fund linked to Hyperliquid. Bitwise followed with BHYP three days later, while Grayscale introduced HYPG on June 3. That structure can also provide an alternative for institutions and other investors that face restrictions on directly accessing decentralized cryptocurrency platforms — a constraint that has historically applied to tokens issued by or tied to decentralized protocols, which typically fall outside the familiar ETF custody and disclosure framework.

SoSoValue data showed that the three funds had accumulated $356.58 million in net inflows through September 4. Bitwise's BHYP accounted for the entire $10.52 million inflow recorded on Friday, according to the data cited in the source material. Combined assets across the products reached $480.86 million, indicating that the funds have attracted substantial capital despite their relatively recent launches.

U.S. Access to Hyperliquid Remains Limited

The institutional interest comes as access to Hyperliquid itself remains restricted for U.S. users. Hyperliquid operates a blockchain-based decentralized exchange that is particularly known for perpetual futures contracts. Its main platform does not currently provide access to U.S. users, making regulated investment products one route for American investors seeking exposure to the ecosystem. This mirrors a recurring dynamic in crypto markets, where U.S. regulatory constraints on offshore or decentralized venues tend to channel demand toward regulated, exchange-listed vehicles.

Separately, Payward is working with the Commodity Futures Trading Commission on regulated Hyperliquid-linked products through Bitnomial. The proposal could create a separate avenue for U.S. customers to access Hyperliquid-related products without directly using the main Hyperliquid platform.

The developments underscore the emerging distinction between direct access to decentralized trading platforms and regulated financial products built around their underlying assets. For UBS, Bank of Montreal, Jane Street and other institutional investors, the reported ETF positions provide evidence of participation in that regulated market. However, the filings alone do not establish whether the institutions have taken direct directional exposure to HYPE, particularly where holdings may represent client assets or be offset through hedging strategies.

Source: Hokanews — Writer: Marcus Renfield, Crypto Market Analyst & Onchain Writer.