Grayscale Hyperliquid Staking ETF is a passive investment trust that provides regulated, exchange-traded exposure to HYPE, the native digital asset of the Hyperliquid Network. The Trust holds HYPE and intends to stake a significant portion of its holdings to earn additional tokens as rewards, subject to satisfying specific tax conditions. Shareholders receive the majority of these net staking rewards as periodic cash distributions, while the Sponsor, Custodian, and Staking Provider retain the remainder. This staking feature serves as the primary economic differentiator from standard spot digital asset products. The underlying Hyperliquid Network is a layer-1 blockchain for high-performance on-chain derivatives trading. The network uses a fully on-chain central limit order book called HyperCore and an Ethereum-compatible execution environment called HyperEVM. HYPE functions as the network's utility and governance token. The Trust’s business model relies on an annual Sponsor’s Fee based on its holdings' value, which covers ordinary operating expenses like custody and administration. To manage the liquidity mismatch between share redemptions and the mandatory unbonding period required for unstaking HYPE, the Trust maintains a liquidity sleeve of unstaked assets. Authorized Participants, such as Jane Street and Virtu Americas, facilitate share creation and redemption in blocks to align the share price with the market price of its HYPE holdings.