Paradigm, a major investor in Hyperliquid, unstaked 2.14 million HYPE tokens valued at over $88 million on April 21, according to on-chain data, sending a wave of concern through the market. The move coincided with Grayscale updating its spot Hyperliquid ETF filing, creating a complex scenario for the token's price, which dropped about 10% to test the critical $38-$40 support zone.
"More signs of movement between issuers and the SEC," a Bloomberg ETF analyst, James Seyffart, said, commenting on the updated filings from multiple issuers this month. Paradigm’s large-scale token movement, representing 5.7% of HYPE’s circulating supply, could be to seed upcoming ETF funds or a direct sell-off, fueling market uncertainty.
Grayscale's amended S-1 filing, submitted on April 20, revealed a significant strategic shift, replacing Coinbase with Anchorage Digital Bank as the custodian for the proposed fund, which will trade under the ticker GHYP. This change is notable as Anchorage is the first and only federally chartered crypto-native bank in the United States, a move seen as prioritizing a stronger regulatory framework. Other issuers have also been active, with Bitwise and 21Shares amending their filings to include ticker symbols and fee structures.
The market is now watching key levels closely. According to options platform Derive, HYPE could remain choppy between $40 and $50 until the end of April, citing significant Gamma walls at these strikes. A sustained drop below $40 could see prices move towards the $34-$36 support level. Conversely, a strong move towards the upper band of $45-$50 could amplify a breakout scenario, with bulls eyeing a retest of recent highs.
Grayscale’s decision to appoint Anchorage Digital over the dominant Coinbase Custody highlights a maturing institutional infrastructure for digital assets. By selecting a federally chartered bank, Grayscale appears to be proactively addressing potential regulatory concerns around custody and conflicts of interest. Anchorage, which was already a secondary custodian for Grayscale's Bitcoin and Ethereum trusts, is now positioned as a primary competitor in the ETF custody space, having recently secured a $4.2 billion valuation after a $100 million investment from Tether.
The timing of Paradigm's unstaking, coupled with a 40% reduction in HYPE positions by the top 100 holders earlier in the week, suggests a potential de-risking ahead of anticipated volatility. While the exact motive remains unclear—whether it's related to ETF seeding, profit-taking, or a reaction to broader DeFi market fears following the recent Kelp DAO exploit—the impact on HYPE's price is undeniable. The coming weeks will be crucial in determining if the institutional interest signaled by the ETF filings can overcome the short-term selling pressure.
This article is for informational purposes only and does not constitute investment advice.
