Grayscale's Hyperliquid ETF & Crypto ETF strategy Revealed! | Krista Lynch

**Tony Edward** (0:05)
Hey, folks, we are recording at the Injective Policy Summit powered by the Blockchain Association. And joining me is Krista Lynch, who's the head of Capital Markets and Trading at Grayscale. Krista, great to have you.

**Krista Lynch** (0:15)
Thanks so much for having me.

**Tony Edward** (0:17)
We've done a virtual interview, so this is our first in person. So really, really awesome to be doing this with you.

**Krista Lynch** (0:22)
Yeah, I'm glad we can do it in three dimensions today.

**Tony Edward** (0:24)
For sure. So Krista, tell us a bit about what's the latest with Grayscale? What are some new products that you guys have launched?

**Krista Lynch** (0:31)
Yeah. So we're continuing to launch new single token products. The generic listing standards, which I think we touched on last time we spoke, really created a framework for bringing single tokens to market in ETF form. We're really excited now we're able to select tokens that we have a lot of conviction about to deliver in that way.
One that we just launched is HYPG, H-Y-P-G is the ticker, it's on the hyperliquid protocol. We're really excited about hyperliquid for a couple of reasons. We'll probably get into perpetual futures and some of the prevalence they've had in the markets recently, but our hype product is a way to really express conviction on that protocol.
Now, some other areas we've been focusing on, we'd be remiss if we didn't talk about how prices have broadly been flat. We've been working a lot in the background on some of the infrastructure in order to enhance existing products. That covers things like in-kind abilities, staking, and then also beefing up our educational program. The Grayscale Institute is an educational resource we've launched in the past few months as a way for investors to get more up to speed on crypto topics. Also, the stack run by our head of research, Zach Pandel is a very active blog that we've been posting a lot on recently. Building up some stuff in the background to keep the exuberance up, even though the prices might not be the most exciting thing right now.

**Tony Edward** (1:50)
It's really great to hear that you're educating institutions and these folks because that's so needed for the adoption and for this asset class and technology to grow in adoption over time. You mentioned staking.
During this period where the market is down, are you seeing more folks starting to stake?

**Krista Lynch** (2:05)
Yeah, I think the ETFs have really opened up that ability. For me, as an example, even though I work in the crypto industry, I have a lot of crypto touchpoints, I'm not ready to stake my own assets personally, but I am willing and able to stake them through a product like a Grayscale ETF.
So I think that we've seen the ability for ETFs to implement staking as a way for more investors to get involved in the staking landscape. And then as we roll out more tokens, a lot of them are proof of stake assets. And so that's another way that staking is becoming more mainstream.

**Tony Edward** (2:38)
And then I remember a product you guys were first to launch. I think it was the index, like top five.

**Krista Lynch** (2:43)
Yeah.

**Tony Edward** (2:44)
Are you seeing more exposure to that? Because investors, in the most part, look for index investing options.

**Krista Lynch** (2:49)
Yes. So GDLC is the ticker there. Grayscale Coindesk Crypto 5
And I think that that becomes an even more compelling product over time as more single token assets come to market in ETF form, because there are so many of them. So we see that a lot of investors are ready to get beyond Bitcoin, or perhaps they're still at the beginning of their crypto journey. But taking that jump and moving beyond, it can be quite intimidating when there are so many possibilities. So a product like GDLC, which captures about 90% of the crypto market in one simple ticker, is very compelling as more single tokens hit the market in this easy to digest ETF form. The menu gets bigger, which is great for investor choice, but can also be overwhelming.

**Tony Edward** (3:33)
Yeah.
And then the index makes it way I don't have to think. Just give me exposure, like the S&P 500 or the NASDAQ.

**Krista Lynch** (3:40)
Exactly. We like to liken it to the S&P 500, and you can delegate that token selection to an asset manager, like Grayscale, so that you don't have to go out and diligence all the protocols individually yourself.

**Tony Edward** (3:52)
Will there be over time a top 10 or a top 20 or top 100 eventually?