Morgan Stanley Low-Cost Bitcoin ETF and Hyperliquid Surge

Morgan Stanley’s Morgan Stanley Bitcoin Trust (MSBT) launched in April and collected about $34 million on its first day. The fund reported roughly $265 million in net assets by May 26 and has not recorded any net outflows since inception. MSBT carries a 0.14% expense ratio and is distributed through Morgan Stanley’s wealth channel of about 16,000 advisors.

MSBT entered a market dominated by larger products. The largest spot Bitcoin fund holds more than $60 billion, while other major entrants have seen repeat days of net outflows. MSBT’s launch offered a lower-fee option from a bank-affiliated manager and was positioned to provide regulated spot Bitcoin exposure to retail and advisory clients.

Hyperliquid-related ETFs began trading in May and accumulated assets rapidly after mid‑May as HYPE token prices rose. Hyperliquid is a high-performance blockchain designed for onchain trading and supports a decentralized perpetual futures exchange. Issuers cited protocol data showing about $2.9 trillion in trading volume in 2025 and roughly 60% of global onchain derivatives open interest.

Protocol economics route most trading revenue toward open-market purchases of HYPE tokens, reducing circulating supply. HYPE token prices climbed about 40% in the month leading into mid‑May, which coincided with inflows into HYPE-based ETFs.

21Shares launched the 21Shares Hyperliquid ETF (THYP) on May 12 with a 30-basis-point fee and reported about $55 million in assets. The issuer also listed the 21Shares 2x Long HYPE ETF (TXXH), a leveraged product that targets twice the daily return of HYPE. Bitwise listed the Bitwise Hyperliquid ETF (BHYP) on May 15 with a 34-basis-point fee that is waived for the first month on the initial $500 million of assets; BHYP passed $60 million in assets. U.S.-listed HYPE ETFs totaled roughly $120 million in a short period, reflecting both net inflows and HYPE price appreciation. Grayscale has filed for a Hyperliquid ETF as well.

A publicly traded company tied to the ecosystem, Hyperliquid Strategies (ticker PURR), began trading on NASDAQ in December 2025. The company operates as a digital asset treasury and accumulates HYPE tokens on its balance sheet.

Across crypto ETFs, about 30 new crypto products launched in 2026 through mid‑year. Aggregate net flows in the broader crypto ETF market have been weak while spot crypto prices faced downward pressure.