Grayscale Hyperliquid ETF Shifts Strategy: Anchorage Digital Bank Joins as Custodian
Grayscale Investments has made a significant update to its proposed Hyperliquid exchange-traded fund (ETF), naming Anchorage Digital Bank as a custodian in recent regulatory filings. This move, confirmed in documents submitted to the U.S. Securities and Exchange Commission (SEC) in early April 2026, adds a second major custody partner to the fund’s structure. The development marks a strategic evolution for one of the most watched crypto ETF proposals currently before regulators.
Grayscale’s Hyperliquid ETF Filing Gets a Key Update
According to the amended S-1 registration statement filed with the SEC, Grayscale detailed Anchorage Digital Bank’s role in safeguarding the fund’s assets. Previous versions of the filing had identified Coinbase Custody Trust Company as the sole primary custodian. The updated document now lists both entities, signaling a multi-custodian approach. Industry analysts view this as a risk-mitigation and operational resilience strategy. “Using multiple qualified custodians is becoming a standard practice for large-scale digital asset funds,” noted a report from Bloomberg Intelligence. This structure can help address regulatory concerns about asset safety and provide redundancy.
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Anchorage Digital Bank’s Entry into the ETF Arena
Anchorage Digital Bank is a federally chartered digital asset bank, regulated by the Office of the Comptroller of the Currency (OCC). Its inclusion in Grayscale’s filing is notable. The bank has built a reputation for serving institutional clients with a full suite of crypto banking services, including custody. Data from the company shows it custodies tens of billions in client assets. For Anchorage, being named in a high-profile ETF filing represents a major competitive win. It places the bank directly alongside Coinbase, the dominant player in U.S. crypto exchange and custody services. This suggests Grayscale is seeking the specific regulatory and security assurances that a federally chartered bank can provide.
Why Custody is the Critical Battleground
The custody of underlying assets is arguably the most scrutinized element of any spot cryptocurrency ETF. Regulators, led by the SEC, have repeatedly emphasized the need for secure, compliant custody solutions as a prerequisite for approval. Grayscale’s pivot to a dual-custodian model with Anchorage and Coinbase directly responds to this focus. It demonstrates a concerted effort to build an operational framework that meets the highest regulatory standards. What this means for investors is a potential reduction in counterparty risk. The fund’s assets wouldn’t be concentrated with a single service provider.
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Coinbase’s Role Remains Central
Despite the addition of Anchorage, Coinbase’s position appears unchanged. The exchange’s custody arm is still listed as a key service provider in Grayscale’s filing. Coinbase Custody is the custodian for all currently approved U.S. spot bitcoin ETFs, including those from BlackRock and Fidelity. This gives it an unparalleled track record in the eyes of regulators. Grayscale’s decision to add, not replace, suggests confidence in Coinbase’s existing infrastructure. However, it also introduces optionality. The fund could allocate assets between the two custodians based on security, cost, or specific asset requirements.
The current custody sector for major spot crypto ETFs includes:
- Bitcoin ETFs: Coinbase Custody (universally used by all approved funds).
- Ethereum ETFs: Expected to follow a similar model upon approval.
- Multi-Asset/Altcoin ETFs: More complex, often requiring specialized custodians for different blockchain protocols.
Implications for the Broader Crypto ETF Market
Grayscale’s move could signal a new phase in the crypto ETF market. The first wave of bitcoin ETFs standardized around a single custodian. Future funds, especially those tracking baskets of cryptocurrencies like the proposed Hyperliquid ETF, may adopt more complex, multi-provider models. This evolution supports the maturation of the digital asset infrastructure ecosystem. It moves beyond a single point of dependency. For other ETF applicants watching Grayscale’s progress, the updated filing provides a potential blueprint. Using a regulated bank like Anchorage could be seen as an additional layer of compliance and security.
What’s Next for the Hyperliquid ETF?
The SEC’s review process for the Grayscale Hyperliquid ETF continues. The regulator has delayed decisions on several similar multi-crypto fund proposals throughout 2025 and into 2026, requesting additional comments on issues like custody, valuation, and market manipulation. Grayscale’s filing update is a direct engagement with that process. By strengthening its custody arrangements, the asset manager is proactively addressing a known regulatory concern. Approval is not guaranteed, but this strategic shift is a clear response to the SEC’s stated priorities. The coming months will show if this approach moves the needle.
Conclusion
Grayscale’s decision to name Anchorage Digital Bank as a custodian for its Hyperliquid ETF is a calculated strategic update. It reinforces the fund’s security framework and aligns with regulatory expectations for reliable, diversified asset protection. While Coinbase remains a pillar of the proposal, adding a federally chartered bank as a partner adds a distinct layer of institutional credibility. This development highlights the critical and evolving role of custody in the future of cryptocurrency-based financial products. The success of the Grayscale Hyperliquid ETF, and others like it, may hinge on such operational details as much as on market demand.
FAQs
Q1: What is the Grayscale Hyperliquid ETF?
It is a proposed exchange-traded fund from Grayscale Investments that aims to track a broad index of liquid cryptocurrency assets, not just bitcoin or ether. It is currently under review by the SEC.
Q2: Why did Grayscale add Anchorage Digital Bank as a custodian?
Adding a second, federally chartered bank as a custodian likely aims to strengthen the fund’s operational security, provide redundancy, and address specific regulatory concerns about asset safety for multi-crypto products.
Q3: Is Coinbase still involved with the Grayscale Hyperliquid ETF?
Yes. According to the filings, Coinbase Custody Trust Company remains a key custodian for the proposed fund. Grayscale has adopted a multi-custodian model involving both Coinbase and Anchorage.
Q4: What is Anchorage Digital Bank?
Anchorage Digital Bank is a financial institution with a federal charter from the OCC. It provides digital asset custody, trading, and financing services specifically for institutional clients.
Q5: How does this affect the chances of the ETF being approved?
While no single factor guarantees approval, strengthening custody arrangements is a direct response to a primary area of SEC scrutiny. It represents a serious attempt to meet regulatory standards, which could improve the proposal’s prospects.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
