Can Grayscale’s HYPE ETF push spark a short-term price rebound?

Grayscale has registered a Hyperliquid [HYPE]-linked statutory belief in Delaware, a typical step earlier than submitting for an official S-1 ETF utility. This could successfully make it the fourth asset supervisor to affix the U.S Spot HYPE ETF race after Bitwise, VanEck, and 21shares. 

Supply: Delaware 

Based on market watchers, HYPE would be the youngest altcoin to hit the ETF milestone if these purposes are authorised. 

A collective demand from institutional buyers through ETFs, alongside company treasuries and ongoing buybacks, may very well be web optimistic for the altcoin in the long term. 

Nevertheless, will ETF expectations offset the continued weak market sentiment and HYPE value momentum within the brief time period? 

HYPE sentiment caught at ‘concern’ degree

HYPE’s early 2026 restoration hit 18% after climbing to $28 by 06 January. Nevertheless, almost all of the beneficial properties have been erased afterwards. And, the market sentiment didn’t reset regardless of the ETF expectations. 

Supply: Gate

Throughout the early 2026 restoration, HYPE’s sentiment fluctuated between “concern” and “excessive concern” ranges. 

Surprisingly, the continued buyback has been web deflationary with little affect in the marketplace sentiment. The undertaking purchased again and burned 80k HYPE tokens within the final 24 hours, in comparison with 26.7k HYPE from staking rewards –A 3x deflationary. 

HYPE’s sentiment has remained bitter due to ongoing month-to-month unlocks, whale sell-offs, and rising competitors from Lighter, Aster, and different perp DEXes, in keeping with dealer Altcoin Sherpa. 

Sherpa added, 

“It’s (Hyperliquid) finally going to steer the market once more however undecided when that will probably be. I feel Lighter in all probability continues to outperform it within the brief time period.”

Will dip shopping for reverse HYPE losses?

Even so, the Spot Taker CVD (Cumulative Quantity Delta) has turned optimistic for the primary time since final Could.

This implied lively dip shopping for on the spot markets regardless of weak sentiment and value ranges. This might enhance restoration odds, particularly if the broader market sentiment additionally flips optimistic.

Supply: CryptoQuant

In the meantime, the most recent value reversal at $28 has turned it into an important short-term hurdle that doubled up on the 50-day Shifting Common (white sloping line). For confirmed and sustainable restoration, $28 and the transferring common have to be flipped into help. 

In any other case, the lows at $23 and $22 may very well be tagged once more. 

Supply: HYPE/USDT, TradingView 

Closing Ideas

• Grayscale joined Bitwise, VanEck, and 21Shares within the U.S Spot HYPE ETF race. 
• Nevertheless, market sentiment has been muted amid month-to-month unlocks and competitors.