Will Grayscale’s HYPE ETF Ignite a Short-Lived Price Surge? Find Out! 🚀

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In a quaint corner of Delaware, the sharp minds at Grayscale have unfurled their latest endeavor-a Hyperliquid [HYPE]-linked statutory trust. This, dear reader, is not just any ordinary registration; it is the precursor to an official S-1 ETF application. Such a step would, if the stars align, usher Grayscale into the esteemed company of Bitwise, VanEck, and 21shares as they gallantly race toward the U.S. Spot HYPE ETF finish line. 🎩

Market watchers, those modern-day oracles, whisper that should these applications meet approval, HYPE would claim the title of the youngest altcoin to achieve this ETF milestone. Quite the feather in its cap, wouldn’t you agree? 🦚

Now, one might ponder: can the feverish demand from institutional investors, combined with the noble efforts of corporate treasuries and valiant buybacks, yield a net positive for our weary altcoin in the long run? Or will the weighty expectations of the ETF merely serve to mask the ongoing malaise in market sentiment and HYPE’s floundering price momentum in the short term? 🤔

HYPE sentiment ensnared in a web of ‘fear’

As the calendar turned to January 6, HYPE experienced a fleeting recovery, soaring by 18% to reach the lofty heights of $28. Alas, like a puff of smoke, nearly all gains vanished into thin air. The market sentiment remained stubbornly unchanged, impervious to the rising hopes of ETF approval. 😩

Throughout this early 2026 recovery, HYPE’s sentiment danced precariously between “fear” and “extreme fear” levels-almost as if it were auditioning for a tragic play. 🎭

Interestingly, despite the ongoing buyback efforts, which have proved deflationary, the market sentiment appears utterly unmoved. In a dramatic twist, the project burned a staggering 80k HYPE tokens in the last 24 hours, compared to a meager 26.7k HYPE generated by staking rewards-a veritable deflationary extravaganza! 🎉

Yet, HYPE’s mood remains sour, weighed down by the specter of monthly unlocks, whale sell-offs, and an ever-increasing rivalry from contenders like Lighter and Aster, as noted by our savvy trader friend, Altcoin Sherpa. 🐋

Sherpa, with a hint of optimism, remarked,

“(Hyperliquid) is bound to lead the market again, although the timing remains uncertain. I suspect Lighter may continue to steal the spotlight in the near term.”

Can dip buying turn the tide for HYPE?

Despite the prevailing gloom, the Spot Taker CVD (Cumulative Volume Delta) has turned positive for the first time since last May, signaling a flicker of hope. This suggests active dip buying within the spot markets, even as the sentiment and price levels linger in the shadows. If the broader market sentiment also decides to join the party, recovery odds could indeed brighten considerably. 🍀

Meanwhile, the latest price reversal at $28 has transformed this level into a crucial short-term hurdle, doubling as a resistance alongside the 50-day Moving Average-a white sloping line that watches over us like an anxious guardian. For a confirmed and sustainable recovery, our dear $28 and the moving average must metamorphose into steadfast support. If not, we risk revisiting the dreaded lows of $23 and $22 once more. 😱

Concluding Reflections

  • Grayscale has joined the ranks of Bitwise, VanEck, and 21Shares in the exhilarating U.S Spot HYPE ETF race.
  • However, the market sentiment appears muted, overshadowed by monthly unlocks and fierce competition.

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2026-01-11 03:09