The 21Shares Hyperliquid Staking ETF is a passively managed exchange-traded fund sponsored by 21Shares that holds HYPE, the native cryptocurrency token of the Hyperliquid Network. The fund provides retail and institutional investors with direct exposure to HYPE price performance through a regulated vehicle listed on Nasdaq, eliminating the requirement for investors to custody the token themselves. Beyond tracking spot token performance, the fund delegates a portion of its HYPE assets to network validators to generate staking rewards. The fund distributes the majority of these earned staking rewards to shareholders as quarterly cash dividends, while retaining a portion for the sponsor, custodian, and staking service providers. The fund operates under a unitary sponsor fee model paid in HYPE, which covers standard operational costs including custody, fund administration, marketing, audit, and legal expenses. The fund does not actively trade HYPE, transacting tokens only to facilitate share creations and redemptions by authorized participants, cover sponsor fees, and convert staking rewards into cash distributions.