Key Takeaways
- • Multicoin Capital, a crypto investment firm managing $2.7 billion, named Hyperliquid (HYPE) its largest hedge fund holding, according to general partner Spencer Applebaum on October 19, 2026, but did not disclose the position size.
- • HYPE traded near $78 as of October 20, down 13.5% over the past month and about 20% below its $98 peak on September 23.
- • Hyperliquid's open interest nearly doubled in Q3 to $12.2 billion, approaching CME's $13.4 billion, per FalconX strategist Martin Gaspar, who has an interest in derivatives growth.
- • Hyperliquid faces regulatory uncertainty around airdrops, buybacks and secondary trading, and rising U.S. competition as the CFTC has approved regulated crypto perpetual futures.
- • Only 222.4 million of the 1 billion maximum HYPE supply is in circulation, so future unlocks could add selling pressure that buybacks must offset.
Summary
Multicoin Capital, a cryptocurrency investment firm managing $2.7 billion, has named Hyperliquid (HYPE) its largest hedge fund holding, according to general partner Spencer Applebaum on October 19, 2026. Applebaum said the firm bought the tokens on the public market but did not disclose the size of the investment. Despite the endorsement, HYPE has not rallied. As of October 20 the token traded at about $78, down 4% over the past week and 13.5% over the past month, and roughly 20% below its $98 peak on September 23.
Hyperliquid's main product is perpetual futures, contracts that track an asset's price indefinitely. The exchange earns trading fees, and its Assistance Fund directs most of those fees into open-market purchases of HYPE, making the token a proxy for exchange activity. Martin Gaspar, senior crypto market strategist at prime broker FalconX, said Hyperliquid's open interest nearly doubled in the third quarter to $12.2 billion, approaching the $13.4 billion recorded by CME Group. Gaspar also noted that open interest in futures beyond Bitcoin and Ethereum rose 70%. Because FalconX benefits when derivatives trading grows, the article notes Gaspar is an interested party.
Legal and competitive risks remain significant. The Hyperliquid Policy Center submitted a comment letter to the SEC on October 19 seeking clarity on rules covering airdrops, token buybacks and secondary trading, and whether unregistered on-chain protocols can facilitate trading in tokens tied to investment contracts. Because buybacks support HYPE demand, the outcome could affect the token's main source of support. In U.S. markets, the CFTC has approved crypto perpetual futures for regulated exchanges, beginning with a Bitcoin perpetual contract, while CME has sued to challenge that approval. In a September motion, the CFTC asked a federal judge to dismiss CME's suit, arguing any registered exchange may list similar products.
The article argues the Multicoin announcement carries limited guarantees. The firm has not disclosed position size, entry price, holding period or lockup terms, so it can sell at any time. A public-market purchase also does not add to Hyperliquid's trading volume, which funds buybacks. The 'largest holding' label may reflect price appreciation rather than new buying, since Multicoin described HYPE as one of its top liquid-fund positions in a June 2026 research note. The $2.7 billion figure covers the whole firm, not the hedge fund alone. Supply is another factor: about 222.4 million of the 1 billion maximum HYPE supply is circulating, so future releases could add selling pressure.
The publication concludes that the announcement does not provide a compelling reason to buy HYPE at about $78, though Hyperliquid's business model offers stronger token support than many altcoins. The 13.5% monthly decline despite rising open interest suggests exchange activity has not translated into price support. Fourth-quarter open interest data will be a key indicator, and the article notes that surpassing CME's $13.4 billion and reclaiming the $98 peak would signal stronger token performance.
Hyperliquid's main product is perpetual futures, contracts that track an asset's price indefinitely. The exchange earns trading fees, and its Assistance Fund directs most of those fees into open-market purchases of HYPE, making the token a proxy for exchange activity. Martin Gaspar, senior crypto market strategist at prime broker FalconX, said Hyperliquid's open interest nearly doubled in the third quarter to $12.2 billion, approaching the $13.4 billion recorded by CME Group. Gaspar also noted that open interest in futures beyond Bitcoin and Ethereum rose 70%. Because FalconX benefits when derivatives trading grows, the article notes Gaspar is an interested party.
Legal and competitive risks remain significant. The Hyperliquid Policy Center submitted a comment letter to the SEC on October 19 seeking clarity on rules covering airdrops, token buybacks and secondary trading, and whether unregistered on-chain protocols can facilitate trading in tokens tied to investment contracts. Because buybacks support HYPE demand, the outcome could affect the token's main source of support. In U.S. markets, the CFTC has approved crypto perpetual futures for regulated exchanges, beginning with a Bitcoin perpetual contract, while CME has sued to challenge that approval. In a September motion, the CFTC asked a federal judge to dismiss CME's suit, arguing any registered exchange may list similar products.
The article argues the Multicoin announcement carries limited guarantees. The firm has not disclosed position size, entry price, holding period or lockup terms, so it can sell at any time. A public-market purchase also does not add to Hyperliquid's trading volume, which funds buybacks. The 'largest holding' label may reflect price appreciation rather than new buying, since Multicoin described HYPE as one of its top liquid-fund positions in a June 2026 research note. The $2.7 billion figure covers the whole firm, not the hedge fund alone. Supply is another factor: about 222.4 million of the 1 billion maximum HYPE supply is circulating, so future releases could add selling pressure.
The publication concludes that the announcement does not provide a compelling reason to buy HYPE at about $78, though Hyperliquid's business model offers stronger token support than many altcoins. The 13.5% monthly decline despite rising open interest suggests exchange activity has not translated into price support. Fourth-quarter open interest data will be a key indicator, and the article notes that surpassing CME's $13.4 billion and reclaiming the $98 peak would signal stronger token performance.
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