21Shares Hyperliquid ETF is a passive fund providing investors with indirect exposure to HYPE, the native token of the Hyperliquid Network. The trust holds HYPE directly and tracks its price through a volume-weighted index, allowing investors to trade the asset via standard brokerage accounts without managing private keys or digital wallets. The Hyperliquid Network is a proof-of-stake blockchain designed for high-performance trading through an on-chain order book and a smart contract platform. HYPE functions as the network’s utility token for transaction fees, governance, and staking. A core element of the business model is a staking strategy where the fund delegates its HYPE holdings to validators to generate rewards. 21Shares distributes these rewards to shareholders as quarterly cash dividends. The company manages the trust for a unitary sponsor fee that covers operating costs, including administration and custody. The trust utilizes regulated national trust banks for cold storage of its digital assets. Authorized participants facilitate the creation and redemption of shares in exchange for HYPE or cash to maintain secondary market liquidity on the Nasdaq. This structure simplifies access to decentralized finance infrastructure while providing an income stream through network participation.