# Multicoin Capital Names Hyperliquid Largest Hedge Fund Holding

> Multicoin Capital's $2.7B hedge fund now holds Hyperliquid tokens, but price dropped 14% monthly.
- Title: Multicoin Capital Names Hyperliquid Largest Hedge Fund Holding
- Summary: Multicoin Capital's $2.7B hedge fund now holds Hyperliquid tokens, but price dropped 14% monthly. Multicoin Capital's largest hedge fund holding in…
- Keywords: multicoin capital, hyperliquid, crypto, hype, hedge fund, 2.7 billion, 14% monthly drop, perpetual futures, open interest, sec, Multicoin, Capital
- Source: 24/7 Wall St. — https://247wallst.com/investing/cryptocurrency/2026/10/20/multicoin-just-made-hype-its-largest-hedge-fund-holding-is-hyperliquid-a-buy-after-a-14-monthly-drop
- Author: Sam Daodu
- Published: 2026-10-20T14:30:50+00:00
- Read time: 1 min
- Topics: multicoin capital, hyperliquid, crypto, hype, hedge fund, 2.7 billion, 14% monthly drop, perpetual futures, open interest, sec
## Multicoin Capital Names Hyperliquid Largest Holding
Multicoin Capital, a cryptocurrency investment firm managing $2.7 billion, named Hyperliquid its largest hedge fund holding on October 19, 2.026.

> Multicoin Capital, a cryptocurrency investment firm managing $2.7 billion, has named Hyperliquid (CRYPTO: HYPE) its largest hedge fund holding
## HYPE Price Drops 14% Monthly
HYPE trades at $78, down 13.5% over the past month and 20% below its $98 peak on September 23.

> As of October 20, the token trades at about $78, down 4% over the past week and 13.5% over the past month
## Hyperliquid's Revenue Model
Hyperliquid generates revenue through trading fees, channeling most into automated HYPE purchases via its Assistance Fund.

> Hyperliquid makes money through trading fees, and its Assistance Fund channels most of these fees into automated purchases of HYPE on the open market.
## Open Interest Doubles in Q3
Hyperliquid's open interest nearly doubled to $12.2 billion in Q3, approaching CME Group's $13.4 billion.

> Martin Gaspar, senior crypto market strategist at prime broker FalconX, noted that Hyperliquid’s open interest, representing the total value of active futures contracts, nearly doubled in the third quarter, reaching $12.2 billion.
## SEC Legal Concerns for Hyperliquid
Hyperliquid Policy Center submitted a comment letter to SEC on October 19, seeking clarity on airdrops, token buybacks, and secondary trading.

> The Hyperliquid Policy Center, which advocates for the exchange, submitted a comment letter to the SEC on October 19, asking for clarification on rules regarding airdrops, token buybacks, and secondary trading.
## U.S. Competition Intensifies
CFTC approved crypto perpetual futures for U.S. exchanges, while CME filed a lawsuit challenging the approval.

> The CFTC has approved crypto perpetual futures for regulated U.S. exchanges, starting with a Bitcoin perpetual contract, while CME has filed a lawsuit challenging that approval.
## Multicoin's Claim Doesn't Guarantee Trading
Multicoin did not disclose position size, entry price, holding duration, or lockup terms for HYPE.

> Multicoin’s announcement does not commit the firm to any specific actions; it did not disclose details such as position size, entry price, holding duration, or lockup terms
## Supply Pressure on HYPE
Only 222.4 million HYPE tokens (22% of 1 billion max supply) are in circulation, creating future selling pressure.

> Currently, only 222.4 million HYPE tokens, about 22% of the 1 billion maximum supply, are in circulation, so future releases could increase selling pressure that buybacks need to manage.
## Is HYPE a Buy After Drop?
HYPE's 13.5% monthly drop suggests robust exchange data hasn't maintained price despite rising open interest.

> HYPE’s 13.5% decline over the past month, despite rising open interest, suggests that robust exchange data hasn’t been able to maintain its price.
## Key takeaway

Multicoin Capital's largest hedge fund holding in Hyperliquid (HYPE) has not boosted the token's price after a 14% monthly drop.