Druckenmiller Backs Crypto Firm, Sparking Massive Options Spike

Stanley Druckenmiller announced on X that he has invested in TradeXYZ, a move that immediately triggered a sharp rise in the stock of a related crypto treasury company. The hedge fund manager, known for his high returns and for impacting central banks in the 1990s, posted the news on Thursday. His statement confirmed he is excited to use the firm’s products to enhance his investment process.

The announcement followed news that TradeXYZ, a primary developer of perpetual futures markets on the Hyperliquid exchange, had signed a partnership with Intercontinental Exchange. The two companies stated they are seeking regulatory approvals to bring these onshore perpetual futures markets into the United States. Representatives for Druckenmiller confirmed his X statement to the Financial Times shortly after the partnership news broke.

Traders quickly moved into Hyperliquid Strategies, a company that invests in the HYPE token powering the Hyperliquid exchange. Shares of the company surged 19 percent on Thursday, reaching their highest level in three weeks. This spike was accompanied by a massive increase in options activity, with more than 111,000 contracts traded during the session.

This volume represented more than six times the 30-day average for the stock. The trading flows leaned heavily bullish, with nearly 86,000 call options traded compared to under 27,000 put options. Data from Cboe LiveVol indicated that almost four times as many call options were initiated by buyers than puts were. Only one of the top ten largest trades involved buying puts.

David Schamis, CEO of Hyperliquid Strategies, said the partnership with ICE brings Hyperliquid markets and liquidity to American investors. He described ICE as a cornerstone of traditional finance and the ideal partner for the deal. Schamis noted that the agreement demonstrates strong demand for perpetual futures trading and represents a step toward regulated trading of the asset class.

The most popular specific trades in Hyperliquid Strategies involved selling 13-strike put options expiring on December 18 and buying 13-strike call options expiring on November 6. This combination resembles a risk reversal strategy, which signals a bullish expectation for short-term price continuation. It also reflects confidence that the stock will not fall below 13 dollars by the end of the year.

President Donald Trump had previously mentioned in August that regulators were working to bring the exchange onshore. The current partnership aligns with that regulatory direction. The market reaction to Druckenmiller’s investment and the ICE deal shows immediate investor interest in the transition of crypto perpetual futures into the U.S. market.