Grayscale Files for Hyperliquid ETF, White House Pursues AI Framework, and South Korea Seeks Crypto Custodian

Today in crypto, several significant developments are making headlines. Grayscale, a leading crypto asset manager, has filed for a spot Hyperliquid exchange-traded fund (ETF), joining Bitwise and 21Shares in seeking to offer a product tied to the Hyperliquid perpetual futures protocol and blockchain. The Grayscale HYPE ETF would track the price movement of the Hyperliquid (HYPE) token and trade under the ticker GHYP on the Nasdaq if approved.

According to Grayscale's S-1 registration statement filed with the Securities and Exchange Commission, the company listed Coinbase as the custodian but didn’t disclose a management fee for the proposed Hyperliquid product. Grayscale’s filing comes as Hyperliquid continues to be integrated by crypto platforms and be increasingly relied on by traditional finance (TradFi) when traditional markets are closed, as it offers 24/7 trading for tokenized real-world assets like oil and gold.

Grayscale's Hyperliquid ETF Filing

Grayscale said it may consider incorporating staking rewards into its Hyperliquid ETF at a later date, provided certain conditions are met. Staking would enable GHYP investors to earn yield on top of potential price appreciation from the HYPE token. This move is significant, as it could provide investors with an additional revenue stream. Bitwise filed for its Hyperliquid ETF in September and amended it in December to include staking, while 21Shares also contemplated incorporating staking at a later date in its October filing.

White House Introduces National AI Framework

The White House has introduced a national AI framework aimed at creating a unified federal approach to artificial intelligence, warning that a patchwork of state-level rules could slow innovation and weaken US competitiveness. The proposal calls on Congress to preempt inconsistent state regulations and establish clear nationwide standards. Key priorities include protecting children, addressing intellectual property concerns, safeguarding free speech, and supporting workforce adaptation as AI adoption accelerates.

South Korea Seeks Private Crypto Custodian

South Korea’s National Tax Service (NTS) is moving to select a private custody provider for seized crypto assets after a February press release exposed a wallet recovery phrase and triggered the unauthorized transfer of confiscated tokens. On Feb. 26, the NTS accidentally exposed a crypto wallet seed phrase in an official press release, resulting in the unauthorized transfer of crypto tokens valued at about $4.8 million. The release included an image of a Ledger cold wallet and a sheet of paper showing the mnemonic phrase without being blurred.

The agency plans to evaluate candidates based on several factors, including security requirements, company size, and whether the firm holds insurance under South Korea’s Virtual Asset User Protection Act. The NTS is reportedly aiming to select a provider within the first half of 2026. This development highlights the need for secure and reliable crypto custody solutions, especially for government-held assets.

Conclusion and Future Outlook

In conclusion, today's crypto news highlights the growing importance of regulatory clarity and security in the digital asset space. As Grayscale's Hyperliquid ETF filing and the White House's AI framework demonstrate, there is a need for unified standards and approaches to support innovation and growth. Meanwhile, South Korea's search for a private crypto custodian underscores the importance of secure and reliable custody solutions. As the crypto industry continues to evolve, it is likely that we will see more developments in these areas, shaping the future of digital assets and their role in the global economy.