Grayscale ignites a HYPE fee war

June 03, 2026

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Zcash turns bug scare into privacy test

Key points:

  • Zcash deployed Zebra 4.5.3 and 5.0.0 after discovering a flaw in the Orchard shielded pool. The Foundation said it found no evidence of exploitation and reported no impact on total ZEC supply.

  • ZEC remained resilient as shielded balances reached 5.1 million ZEC and network hashrate hit a record 16.3 GH/s.

News - A recently disclosed flaw in Zcash’s Orchard shielded pool tested confidence in the privacy-focused network, but market sentiment remained largely intact.

The issue involved Orchard’s Action circuit, where an exploit could theoretically have created undetected value. Developers first released Zebra 4.5.3 to disable Orchard actions at block 3,363,426, then deployed Zebra 5.0.0, activating the NU6.2 hard fork at block 3,364,600 and restoring Orchard functionality under updated rules.

According to the Zcash Foundation, there is no known evidence the flaw was exploited, and ZEC supply was unaffected. Transparent and Sapling transactions continued operating throughout the upgrade.

Explorer confusion during rollout - The rollout also sparked confusion when some block explorers appeared stalled near block 3,364,601 on June 3. Reports indicated the issue was limited to explorer synchronization, while mining pools continued producing blocks under the new consensus rules.

Privacy adoption and network strength - ZEC’s resilience coincided with growing privacy usage. Shielded balances rose to roughly 5.1 million ZEC, including about 4.5 million ZEC held in Orchard by late May. Network hashrate reached 16.3 GH/s, signaling strong miner participation.

Market positioning risks - Positioning, however, remains aggressive. Hyperliquid data showed roughly $33.73 million in net ZEC buying pressure, while annualized funding rates near 40.77% indicated traders were paying a premium to maintain long exposure. That supports a bullish backdrop but leaves the market vulnerable if leveraged positions begin to unwind.

HYPE ETF race gets a fee-war twist

Key points:

  • Grayscale’s Hyperliquid Staking ETF debuted on Nasdaq under HYPG with a 0.29% sponsor fee, below 21Shares’ 0.30% THYP and Bitwise’s BHYP, which rises to 0.34% after its first-month waiver.

  • HYPE held near record levels as Hyperliquid-linked ETFs drew over $132 million in inflows, while Grayscale added staking exposure to the product.

News - Hyperliquid’s HYPE token is attracting a new wave of institutional attention, but the sharper story is the ETF race now forming around fees, staking, and access.

Grayscale launched its Hyperliquid Staking ETF on Nasdaq under HYPG, making it the third U.S.-listed Hyperliquid product in less than a month after 21Shares’ THYP and Bitwise’s BHYP. Its 0.29% sponsor fee is the lowest among the three, giving Grayscale a cost edge as issuers compete for HYPE exposure.

The product is designed to give investors exposure to HYPE while generating additional returns through staking. Grayscale cited historical HYPE staking rewards of about 2.2% annually.

ETF demand is building - The launch followed strong early demand for rival products, with Hyperliquid-linked funds drawing over $132 million in cumulative net inflows in May. HYPE recently traded near record highs around $75 to $76, even as Bitcoin weakened.

Retail attention also climbed, with data showing a sharp increase in HYPE followers over the past week and sentiment around the token in extremely bullish territory.

Revenue gives HYPE its hook - Hyperliquid’s appeal goes beyond ETF wrappers. Grayscale cited approximately $857 million in 2025 protocol revenue and about 99% of fees directed toward token buybacks.

That mix of ETF access, staking, and buybacks has strengthened HYPE’s narrative. The next test is whether low fees and staking rewards can keep inflows growing.

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Crypto football deals face World Cup heat

Key points:

  • The FCA cautioned Premier League clubs that deals with unauthorized crypto and trading firms could expose fans to risky products, while creating legal, money laundering, and reputational risks for clubs.

  • Crypto companies invested a record £130 million in Premier League sponsorships last season, with 14 of 20 clubs carrying crypto or blockchain partners.

News - Crypto’s football sponsorship boom is facing tougher scrutiny just as global attention turns to the 2026 FIFA World Cup.

The UK Financial Conduct Authority (FCA) has written to football clubs, including Premier League teams, urging them to review deals with unauthorized crypto businesses and trading platforms. The regulator said some firms may be using club branding to reach supporters while breaching UK financial promotion rules or operating without proper authorization.

The warning lands as clubs rely more heavily on commercial deals. Crypto firms spent a record £130 million on Premier League sponsorships last season, while 14 of 20 clubs carried crypto or blockchain partners. That influx has also helped fill gaps as gambling sponsorship rules tighten.

A club badge is not a safety check - The FCA’s concern centers on fan trust. Lucy Castledine, the FCA’s Director of Consumer Investments, said clubs should not let unauthorized firms use that loyalty to put “potentially dodgy products” in front of millions of supporters.

Fans using unregulated firms risk losing all their money and may lack access to compensation or complaint schemes.

Revenue pressure meets regulation - Commercial income has become increasingly important for top clubs, with Manchester City generating about $475 million from commercial revenue in 2025, ahead of broadcast income.

The FCA said clubs must conduct proper, ongoing due diligence on financial sponsors. With the World Cup beginning June 11 in Mexico City, crypto partnerships are entering a brighter global spotlight.

Trezor chip flaw puts wallet security under spotlight

Key points:

  • Following an independent review by Ledger Donjon, Trezor and Tropic Square disclosed a security weakness affecting the TROPIC01 Secure Element chip used in the Trezor Safe 7.

  • Trezor said user funds remain protected because the flaw affects only one security layer and would require physical access, device disassembly, and specialized lab equipment to exploit.

News - Trezor’s latest security disclosure has put hardware wallet design back in focus, but the company says Safe 7 users do not need to take action.

The issue involves TROPIC01, one of the secure elements used in the Trezor Safe 7. Ledger Donjon, the security research team at rival wallet maker Ledger, found the weakness during an independent audit initiated by Tropic Square. Under lab conditions, researchers used a laser fault injection attack to extract some chip-held secrets and bypass firmware signature verification.

Tropic Square later found a related method that could expose another chip-held secret tied to PIN functions. Still, Trezor said compromising TROPIC01 alone cannot give access to a user’s wallet, PIN, private keys, backups, or funds.

A lab attack, not a live wallet drain - The exploit would require physical possession of the device, disassembly, advanced expertise, and specialized equipment. Trezor said there is no evidence of real-world exploitation or compromised user funds.

Since the flaw is hardware-based, it cannot be fixed through a remote firmware update.

Rivals turned security testers - The disclosure stands out because Ledger, one of Trezor’s biggest competitors, helped uncover the issue. Trezor CEO Matej Žák said the open process used to find, examine, and disclose the vulnerability is the model the industry should follow.

For users, the signal is narrower than the scare: Safe 7’s layered design held, but independent audits remain crucial in crypto custody.

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Did you know?

  • UNICEF is funding blockchain builders in crypto: UNICEF’s Venture Fund offers selected blockchain startups up to $100,000 in ETH, BTC, or USDC, along with technical mentorship. The focus is not speculation, but open-source tools that can support children and vulnerable communities.

  • Bhutan turned hydropower into a Bitcoin strategy: Bhutan has used its 100% hydropower-powered grid to mine green cryptocurrency, with officials saying past crypto profits helped pay government salaries for two years. It remains one of the rare examples of a sovereign crypto strategy built around energy, jobs, and national development.

  • Your pink slip may be getting an on-chain future: California’s DMV has digitized 42 million car titles on Avalanche, with the system designed to let residents claim vehicle titles through a secure mobile wallet app. The project shows blockchain moving into everyday public records, not just trading and tokens.

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Top 3 coins of the day

Lighter (LIT)

Key points:

  • LIT climbed to $1.69 on the 4H chart, extending above its recent $1.30 to $1.40 range as volume picked up to 68.86K.

  • The MA Cross stayed bullish, with the 20-period MA above the 50-period MA, while Stochastic RSI remained stretched above 90.

What you should know:

LIT’s rally carried the feel of a market where available supply had started thinning faster than buyers were backing off. Price had already built a higher base before the latest breakout pushed it toward $1.70. The move had specific backing too: Anchorage Digital opened institutional access to Lighter without prefunded accounts, Vitalik Buterin’s DeFi proposal credited Lighter’s founder, and the protocol’s 100% revenue-backed buyback model added to the supply-squeeze narrative. On the chart, the MA Cross stayed firmly bullish, while Stochastic RSI above 90 showed the surge had become heated. The $1.62 to $1.65 area is the first support zone, while $1.70 to $1.71 is the immediate resistance band to clear.

Ondo (ONDO)

Key points:

  • ONDO rose to $0.418 on the 4H chart after reclaiming the $0.390 to $0.400 zone, with volume climbing to 9.68M.

  • The Supertrend flashed a Buy signal during the rebound, while the Awesome Oscillator turned positive at 0.0289.

What you should know:

ONDO’s chart shifted from recovery mode into a cleaner product-led reset. After sliding toward the $0.340 to $0.350 area, price rebounded sharply as traders reacted to Ondo Perps, which is set to launch on June 9 with up to 20x on-chain exposure to U.S. stocks, ETFs, and commodities. Futures positioning also strengthened, with Open Interest reportedly rising 27% to $234.68M. On the chart, the Supertrend flipped to Buy, and the Awesome Oscillator moved positive, showing buyers had regained momentum. The $0.390 to $0.400 zone is the first support area, while $0.421 and $0.440 to $0.450 are the resistance levels to watch.

Solana (SOL)

Key points:

  • SOL traded near $75.46 on the 4H chart after losing the $80 area, with the latest green candle showing only a small pause after the sell-off.

  • The Supertrend stayed bearish above price near $79.75, while DMI showed -DI far above +DI and ADX above 40.

What you should know:

SOL’s chart told the story of a broken floor trying to turn into a base. Price had slipped below $80, then flushed toward the $72.60 to $73 area before a small rebound formed near $75.46. The drop aligned with a wider leverage wipeout, with over $1.8B in crypto longs reportedly liquidated and Solana seeing about $90M in forced liquidations. Pressure also came from an 82% slide in Solana DEX volume and the upcoming June 7 unlock of 624,666 SOL. On the chart, the Supertrend stayed bearish, while DMI showed sellers still had control. The $72.60 to $73 area is support, while $79 to $80 is the reclaim zone buyers need.

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