HYPE, the native token of decentralized exchange Hyperliquid, jumped more than 23% in the past 24 hours, climbing toward $47 on Friday to hit its highest level since October 2025.

HYPE/USDT daily chart. Source: TradingView

What is driving the sudden HYPE rally, and does the token have enough momentum to extend its bull run in the coming days?

Key takeaways:

• This week’s multiple US spot HYPE ETF launches have strengthened the token’s institutional-demand narrative.
• Coinbase becoming Hyperliquid’s USDC treasury deployer boosts HYPE prices.

HYPE ETF launches fuel institutional demand hopes

The biggest immediate catalyst behind HYPE’s rally appears to be the arrival of US-listed Hyperliquid exchange-traded products.

On Friday, Bitwise launched its spot Hyperliquid ETF, trading under the ticker BHYP on the NYSE.

HYPE/USDT daily chart. Source: TradingView

The fund gives investors regulated exposure to HYPE and intends to stake a portion of its holdings through Bitwise’s in-house staking division. Its sponsor fee is set at 0.34%, with a full waiver for the first month on the first $500 million in assets.

The launch follows 21Shares’ Hyperliquid ETF, THYP, which debuted on Nasdaq on Tuesday.

A day later, onchain data resource Lookonchain claimed that wallets linked to venture capital firm a16z had purchased nearly $67.5 million worth of HYPE tokens.

Source: X

The purchases reportedly took place in the month leading up to the ETF launches, adding to signs of growing institutional interest in Hyperliquid.

Sustained upside through May will likely depend on whether the HYPE ETFs attract meaningful inflows rather than simply generating launch-week speculation.

As of Friday, they were managing $3.17 million worth of assets, according to SoSoValue data.

US spot HYPE ETFs net flows. Source: SoSoValue

Coinbase, Circle deal adds structural tailwind for HYPE rally

HYPE’s rally also gained momentum after Coinbase announced on Thursday that it had become the official treasury deployer of USDC on Hyperliquid.

The deal strengthens USDC’s role as the main collateral and quote asset across Hyperliquid’s onchain markets.

The stablecoin already accounts for roughly $5 billion in supply on Hyperliquid, making it the dominant stablecoin in the ecosystem, according to DefiLlama.

Stablecoin market cap on Hyperliquid. Source: DefiLlama

Under the upgraded AQAv2 framework, Coinbase is expected to share the vast majority of reserve-yield revenue from USDC deployed on Hyperliquid with the protocol.

Circle will also serve as the technical deployer for USDC on Hyperliquid and has committed to stake 500,000 HYPE tokens.

“It’s an admission that Hyperliquid is too dominant in perps to displace, so better to align and capture distribution,” analyst Aylo said in a Thursday post, adding:

“We should see an increase of ~$140M+ in annualised revenue which will be used to buyback HYPE.”

CLARITY Act progress adds regulatory tailwind

HYPE’s rally also came as US crypto regulation showed signs of progress.

On May 14, the Senate Banking Committee advanced the CLARITY Act in a 15–9 vote, marking a key step for a bill that aims to define when digital assets fall under securities or commodities rules.

The update improved sentiment across crypto markets, sparking intraday rallies in Bitcoin, Ethereum, XRP and other top coins.

Still, the CLARITY Act is not law yet. The bill now heads to the Senate, where it will likely need broader bipartisan support to overcome procedural hurdles.

If it passes the Senate, lawmakers would still need to reconcile it with the House version before sending a final bill to President Donald Trump for approval.

HYPE rising wedge warns of 30% price correction

HYPE’s ongoing upside momentum remains inside what appears to be a rising wedge pattern, confirmed by the price trending inside two converging, upward-sloping trend lines.

In technical analysis, such a wedge typically plays out when the price breaks below its lower trend line and falls to the level at a length equal to the structure’s maximum height.

HYPE/USDT daily chart. Source: TradingView

Applying this rule to the HYPE chart brings its downside target to the $26.5–$31.20 range, depending on the potential breakdown point, as shown above. That means a potential 30%-45% correction by June or July.

Conversely, a decisive breakout above the rising wedge’s upper boundary may invalidate the bearish setup altogether, pushing HYPE’s price toward the $59–$60 range, aligning with the 1.0 Fibonacci retracement level shown below.

HYPE/USDT daily chart. Source: TradingView

HYPE’s daily relative strength index (RSI) also supports the short-term bullish case. The indicator remains below the overbought threshold of 70, suggesting the price still has room to extend its rally.

Privacy-focused messaging app Signal has signaled it could exit Canada if forced to comply with the government’s proposed lawful access framework. The legislation, Bill C-22, would require electronic service providers to enable surveillance capabilities and retain user metadata for up to a year, part of a broader effort to aid law enforcement in investigating crimes such as terrorism and child exploitation.

In an interview with The Globe and Mail, Signal’s vice president of strategy and global affairs, Udbhav Tiwari, argued that the bill could threaten end-to-end encryption and leave private messaging services vulnerable to cyberattacks. He said Signal would rather pull out of Canada than compromise on the privacy commitments it has made to users.

Key takeaways

• Bill C-22 would compel tech and messaging providers to build surveillance mechanisms and retain certain user metadata for up to a year to assist law enforcement.
• Signal warns the legislation could undermine encryption and expose private communications to external threats, potentially prompting an exit from Canada.
• The bill is not law yet; parliamentary committee hearings began on May 7 and are ongoing.
• Industry players have mixed reactions: Meta welcomed selective provisions for evidence gathering but raised privacy and cybersecurity concerns, while Windscribe signaled it would consider following Signal if the bill passes.
• The debate echoes broader privacy-security tensions seen in Europe, notably around chat control and client-side scanning proposals.

Encryption under pressure as Bill C-22 advances

The bill, introduced in March as part of a wider regulatory package, would mandate electronic service providers to equip themselves with surveillance capabilities and retain metadata for a defined period. Proponents say the framework would bolster law enforcement’s ability to investigate serious crimes, from terrorism to child exploitation. Critics, however, warn that such measures could erode user privacy and undermine the security guarantees that underlie popular encrypted messaging apps.

Signal’s position highlights a broader industry risk: if end-to-end encryption becomes compromised or undermined by compelled access, the usability and trust in private messaging could be diminished. The Globe and Mail reported that Udbhav Tiwari described the bill as potentially creating vulnerabilities that could be exploited by hackers, undermining the privacy promises Signal offers to its users.

Public discussion around Bill C-22 has already touched on comparisons with the European Union’s controversial privacy proposals, which critics say could push for client-side scanning or other measures that would weaken encryption. The debate frames a larger, ongoing tension between privacy protections and increasing government capability to monitor communications in the name of safety and security.

Industry responses and political context

Tech giants have weighed in with nuanced takes. Meta, for its part, welcomed certain aspects of Bill C-22, arguing that it would provide law enforcement with a clearer legal framework to obtain evidence and protect public safety, while also signaling concerns about the potential impact on Canadians’ privacy and cybersecurity. The company’s stance reflects a common industry position: support for effective enforcement tools, tempered by a demand for clear privacy safeguards.

Canada’s political scene has also spotlighted the privacy-versus-security debate. A post by a Conservative Party Member of Parliament on X asserted that “every member of Parliament in the country uses Signal primarily for its safety and privacy features,” contending that the bill would undermine that privacy. In response, Signal’s leadership indicated it would resist any mandate that compromises user confidentiality.

The bill is not yet law; it must pass through parliamentary review and receive royal assent before taking effect. Committee hearings, which began on May 7, are still underway, signaling that the legislative process could stretch as lawmakers weigh the balance between enforcement capabilities and privacy protections.

Beyond Signal, Windscribe, a VPN provider, warned that the law’s requirements could force providers to log identifying data. In a post responding to The Globe and Mail coverage, Windscribe said it would likely follow Signal in reconsidering its Canadian operations if C-22 advances, arguing that the current draft threatens the core privacy premise of VPNs and similar services.

What comes next for privacy, security, and startups

The unfolding debate places Canada at a crossroads similar to regulatory moves in other regions. As lawmakers refine Bill C-22, observers will be watching not only whether the bill gains passage but how it will affect service design, data retention practices, and cross-border service provision for privacy-centric apps and networks. For developers and users who rely on strong encryption, the central questions are whether the proposed framework can preserve privacy guarantees while providing lawful access tools for investigators, and how firms will operationalize those demands without creating exploitable weak points.

Industry watchers should monitor the committee hearings for clues about potential amendments, as well as any clarifications from tech platforms on how they would implement or resist compliance. The regulatory trajectory in Canada could influence similar debates elsewhere, shaping how privacy-preserving services balance user trust with perceived public safety needs in the months ahead.

Readers should keep an eye on the next set of committee proceedings and any official statements from Signal, Windscribe, and other stakeholders as they gauge how far the government intends to push lawful access measures and what that means for encryption-centric communication tools going forward.

Major South Korean financial conglomerate Hana Financial is buying a stake in Dunamu, the operator of the crypto exchange Upbit, in its latest venture into the digital assets sector, amid a broader trend of traditional financial institutions wading into the digital assets market.

In a regulatory filing on Friday, Hana Financial announced it is buying more than 2.2 million shares in Dunamu, or roughly 6.55% of the company, from investment firm Kakao Investment, worth over 1.003 trillion Korean won ($668 million).

Hana Financial’s 6.55% stake from Kakao makes it the fourth-largest Dunamu shareholder. South Korean outlet The Chosun Daily reported last September that major shareholders of Dunamu include its chairman Song Chi-hyung with 25.5%; Vice Chairman Kim Hyoung-nyon with 13.1%; Kakao with 10.6% and Woori Technology Investment with 7.2%.

Hana Financial said in the filing that the acquisition is to secure “competitiveness in new finance through strategic equity investment.” At the same time, Kakao also filed regarding the sale and said it was keeping 1.4 million shares on its books while offloading the rest to secure “funds for future investments.”

Hana Financial is buying more than two million shares in Dunamu, or roughly 6.55% of the company. Source: DART

A growing number of banks and traditional financial institutions have started to dip their toes into crypto after years of skepticism. Mirae Asset Consulting, an affiliate of South Korean multinational financial services company Mirae Asset Group, acquired a controlling stake in crypto exchange Korbit in February.

Earlier in the year, fellow exchange Coinone announced it was exploring the sale of shares held by its chairman, with local financial institutions and foreign exchanges rumored to be circling. South Korean tech company Naver Financial also agreed last year to acquire Dunamu through a share swap, bringing the Upbit operator under its umbrella.

Hana Financial very active in crypto sector 

The financial conglomerate has been very active in the crypto sector. Hana Financial signed a trilateral memorandum of understanding in April to launch a blockchain-based remittance system with POSCO International and Dunamu. 

Related: South Korea crypto holdings halve in a year as investors turn to stock market

Meanwhile, in March, it struck a deal with the UK’s Standard Chartered Group to collaborate on global financial and digital asset markets, and also inked agreements with USDC issuer Circle and major US crypto exchange Crypto.com to promote stablecoin-based payments for foreign visitors in South Korea.

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OKX has moved closer to securing a major foothold in South Korea after entering talks to acquire a substantial stake in local crypto exchange Coinone alongside Korea Investment & Securities.

According to Yonhap News Agency, OKX and Korea Investment & Securities are each seeking to purchase roughly 20% of Coinone. 

The report stated that the exchange is expected to issue new shares for the transaction rather than transfer existing holdings, a structure that would likely leave Coinone’s current management intact.

If regulators approve the deal, OKX would become the second overseas crypto exchange to take ownership in one of South Korea’s major trading platforms after Binance acquired a stake in Gopax.

Among South Korea’s licensed exchanges, Coinone remains part of the country’s small group of platforms permitted to offer fiat-to-crypto trading services. Trading activity in the domestic market, however, is still heavily concentrated around Upbit and Bithumb.

Arriving within hours of another major investment announcement, the reported OKX transaction follows confirmation from banking group Hana Financial Group that it plans to acquire a $670 million stake in Dunamu, the parent company behind Upbit.

Earlier this year, financial conglomerate Mirae Asset also announced plans to buy a 92% stake in Korbit, another exchange operating within the country’s top tier.

At the same time, South Korean lawmakers are discussing ownership restrictions for digital asset firms under the proposed Digital Asset Basic Act. Local media reports said authorities are considering limiting corporate ownership in crypto exchanges to 34%, while individual shareholders could face a 20% ceiling.

Yonhap reported that Coinone’s current ownership structure may already place attention on those proposed limits. The One Group holds 34.3% of the exchange, while founder Cha Myung-hoon owns 19.14%. Cha is also identified as the largest shareholder in The One Group.

Gaming company Com2uS Holdings controls another 21.95% stake in Coinone, according to Yonhap, while affiliated investment unit Com2uS Plus owns 16.47%.

OKX expands beyond trading infrastructure

The Coinone talks add to a period of aggressive expansion for OKX across payments, institutional services, and blockchain infrastructure.

As previously reported by crypto.news, in Europe, the exchange recently disclosed transaction data from its OKX Card, a stablecoin-linked payment product launched with Mastercard and Circle support. According to OKX, grocery purchases accounted for 26% of transactions made through the card during its first month across the European Economic Area, while restaurants and online marketplaces represented another large share of activity.

Separately, OKX unveiled its Agent Payments Protocol in April, an open framework designed to allow AI agents to complete commercial actions such as payments, escrow, settlement, and dispute handling across multiple blockchains. OKX said the protocol was developed with support from ecosystems including Ethereum, Base, Sui, Aptos, and Optimism.

Institutional services have also remained part of the exchange’s recent expansion plans. Through a partnership with BitGo, OKX integrated off-exchange settlement services in the U.S., allowing institutional clients to trade while assets remain under third-party custody.