# OpenETF Launches Testnet for Tokenized Funds on Hyperliquid

- URL: https://stocks.freetheai.org/news/openetf-launches-testnet-for-tokenized-funds-on-hyperliquid-aff95e
- Published: 2026-10-10T00:24:34Z
- Category: crypto; sentiment: neutral; impact: low
- Symbols: [COINBASE:HYPEUSD](https://stocks.freetheai.org/symbols/COINBASE-HYPEUSD)
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OpenETF has launched a testnet environment on Hyperliquid (COINBASE:HYPEUSD) designed to convert trading portfolios into tokenized investment funds. Under the new protocol, fund managers can execute trades on Hyperliquid while investors hold ERC-20-compatible share tokens directly in their personal digital wallets. The test network operates exclusively with valueless test assets, and official guidelines strictly instruct participants not to deposit live capital.

The setup connects two infrastructure layers: a vault contract on HyperEVM handles share issuance, investor deposits, redemptions, and pricing in USDC, while a corresponding vault on HyperCore acts as the active trading account. Creating a fund requires no central approval or protocol fees, though fund managers must personally purchase a minimum of 100 USDC in shares and maintain at least a 5% commitment ratio. Annual management fees range from 0% to 2%, while performance fees range from 0% to 50%, both of which lock permanently once shares are distributed.

Investors looking at redemption mechanics should note that the testnet includes an exit adjustment fee starting at 0.1%, which increases by 0.05% per unit of notional leverage up to a 1% cap, with all collected fees retained inside the fund. Market participants should monitor for potential future announcements regarding mainnet deployment, as OpenETF has not yet disclosed a timeline for bringing the tokenized fund platform to a live environment.

## Key points

- OpenETF deployed a testnet on Hyperliquid to build tokenized funds using valueless test assets.
- Managers trade portfolios via HyperCore vaults while investors hold ERC-20 share tokens via HyperEVM vaults.
- Fund creation requires no protocol fees, but managers must invest at least 100 USDC and commit a minimum 5% stake.
- Management fees cap at 2% and performance fees cap at 50%, with both rates freezing upon share issuance.
- The protocol charges an exit fee based on leverage up to 1%, and no timeline has been set for a mainnet launch.

## Questions and answers

### What is the OpenETF testnet on Hyperliquid?

The OpenETF testnet is an experimental system allowing fund managers to create tokenized investment funds on Hyperliquid using test assets, with shares issued as wallet-based tokens.

### Can investors use real money on the OpenETF testnet?

No. The testnet deployment uses valueless test assets, and documentation explicitly states that real funds should not enter the system.

### When will OpenETF launch on mainnet?

OpenETF has not provided a timeline for a mainnet deployment.