Druckenmiller's rare X post sends Hyperliquid-linked crypto stock surging 19%
TradeXYZ said it is partnering with Intercontinental Exchange to bring Hyperliquid's perpetual futures onshore in the U.S., and Stanley Druckenmiller confirmed he is an investor.
At a glance
- TradeXYZ and Intercontinental Exchange said they will partner to bring Hyperliquid perpetual futures onshore in the U.S., pending regulatory approvals.
- Stanley Druckenmiller said on X he is "excited to be an investor in trade(xyz)"; his representatives confirmed the statement to the Financial Times.
- Hyperliquid Strategies (PURR) shares rose 19% as more than 111,000 options traded, over six times the 30-day average.
Hedge fund manager Stanley Druckenmiller said on X on Thursday that he is "excited to be an investor in trade(xyz)", the primary developer of perpetual futures markets on the Hyperliquid exchange, shortly after TradeXYZ and Intercontinental Exchange (ICE) announced a partnership to bring those products onshore in the United States.
The two companies said they are seeking regulatory approvals. Druckenmiller, whose post appeared on an otherwise sparse X feed, added that he looked forward to using their innovative product to enhance his investment process. Representatives for Druckenmiller confirmed the statement to the Financial Times.
PURR shares and options surge
The announcement and the post moved the closest publicly traded play to the story: Hyperliquid Strategies (PURR), the company that invests in the HYPE crypto token that powers the Hyperliquid exchange. Its shares rose 19% to their highest level in three weeks.
Options activity was heavy. More than 111,000 options traded on Hyperliquid Strategies on Thursday, more than six times the 30-day average. The flows leaned bullish, with almost 86,000 calls and under 27,000 puts trading, according to Cboe LiveVol data. Almost four times as many calls were likely initiated by buyers than puts, and only one of the top 10 trades involved put-buying.
The most popular trades by volume were selling the 13-strike put expiring Dec. 18 and buying the 13-strike call expiring Nov. 6. Taken together, the two resemble a "risk reversal" strategy — a bullish trade looking for a short-term continuation of the rally, paired with longer-term confidence the stock will not be below $13 by year-end.
Reaction and context
"We are thrilled to see ICE partnering with Trade.XYZ to bring the markets and liquidity of Hyperliquid to American investors," David Schamis, CEO of Hyperliquid Strategies, said in a text. "ICE is a cornerstone of traditional finance and the ideal partner."
Schamis added that the deal shows demand for perpetual futures trading and is a step forward toward regulated trading of the asset class.
In August, President Donald Trump said in a surprise comment to reporters that regulators were working to bring the exchange onshore.
Source: CNBC.
Questions and answers
- Why did Hyperliquid Strategies stock surge?
- TradeXYZ announced a partnership with Intercontinental Exchange to bring Hyperliquid's perpetual futures onshore in the U.S., and Stanley Druckenmiller said on X that he is an investor in TradeXYZ. Options trading in the stock ran well above its average.
- What is Hyperliquid Strategies (PURR)?
- It is a publicly traded company that invests in the HYPE crypto token that powers the Hyperliquid exchange. CNBC describes it as the closest publicly traded play to the news.
- Who is Stanley Druckenmiller?
- A veteran hedge fund manager whose returns are closely followed on Wall Street. His X post about investing in trade(xyz) was confirmed by his representatives to the Financial Times.
