Risks and Uncertainties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Risks and Uncertainties | 6. Risks and Uncertainties
Substantially all the Trust’s assets are holdings of Hyperliquid, which creates a concentration risk associated with fluctuations in the price of Hyperliquid. Accordingly, a decline in the price of Hyperliquid will have an adverse effect on the value of the Shares of the Trust. The trading prices of Hyperliquid have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of Hyperliquid, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of Hyperliquid and the Shares may include an increase in the global Hyperliquid supply or a decrease in global Hyperliquid demand; market conditions of, and overall sentiment towards, the crypto assets and blockchain technology industry; trading activity on crypto asset exchanges, which, in many cases, are largely unregulated or may be subject to manipulation; the adoption of Hyperliquid as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the Hyperliquid Network, and their ability to meet user demands; manipulative trading activity on crypto asset exchanges, which, in many cases, are largely unregulated; and forks in the Hyperliquid Network, among other things.
Anchorage Digital Bank N.A. serves as the Trust’s custodian for Hyperliquid for which qualified custody is available (the “Hyperliquid Custodian”). The Hyperliquid Custodian is subject to change in the sole discretion of the Sponsor. Temporary differences in the quantity of Hyperliquid held by the Hyperliquid Custodian from the amounts reflected in the financial statements may occur. These differences are due to pending settlement of Hyperliquid trades with the Hyperliquid Custodian, which generally occurs within two business days of the trade date.
Payable for Hyperliquid purchased represents the quantity of Hyperliquid purchased for the creation of Shares where the Hyperliquid has not yet settled.
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