Grayscale took an early, procedural step by registering Delaware statutory trusts for a BNB trust and a Hyperliquid (HYPE) trust, setting the groundwork for potential spot ETF structures. This kind of trust formation doesn’t launch a product on its own, but it signals intent and puts the proposals on a path that will face real regulatory scrutiny.
Delaware trust registration gives fund managers a fast, familiar legal wrapper while they prepare more detailed filings, including S-1 disclosures and supporting compliance documentation. These filings are administrative in nature and, by themselves, do not trigger SEC review or create a listed, tradable vehicle.
Why the SEC questions will matter most
The first major obstacle sits with BNB, where the central issue is how the SEC treats the token under securities law, especially given litigation alleging it was offered as an unregistered security. If that classification risk remains unresolved, it becomes a gating factor regardless of how efficiently the trust structure is set up.
HYPE brings a different set of sensitivities because it is described as a newer governance token tied to a decentralized perpetuals venue, which raises questions around market integrity and surveillance expectations. The combination of newer infrastructure and concerns such as concentrated ownership makes it more likely that regulators will interrogate whether the market is mature enough for a spot-style wrapper.
The timeline implied by this step is directional, not definitive, but the typical sequence is clear: a trust is formed first, then an S-1 can follow later once disclosures are ready. Standard industry practice often places that gap at roughly three to nine months, which helps frame expectations without guaranteeing an outcome.
What markets will watch next
The muted reaction makes sense because trust registrations are routine and investors tend to wait for the “real” milestone: S-1 filings that spell out custody, surveillance, and liquidity mechanics in detail. Without those disclosures, the market has limited new information to price beyond the fact that a product concept is being prepared.
Competition adds a strategic layer, with other managers such as VanEck and Bitwise reportedly signaling parallel moves in similar categories, which can pressure timelines and disclosure quality. If multiple issuers converge on similar products, differentiation shifts from headlines to execution—especially around compliance architecture and market-surveillance design.
From here, the conversion path depends on whether Grayscale submits formal S-1 filings and how the SEC responds in its review process. Approval would expand regulated access to BNB and HYPE, while delays or rejection would reinforce that classification, custody assurances, and surveillance standards remain the decisive constraints for crypto ETF market access.
