Markets Daily Crypto Roundup | “Why Former Barclays CEO Bob Diamond Is Bullish on HYPE”

Date: August 18, 2025
Host: Jennifer Senasi, CoinDesk
Guests: Bob Diamond (CEO, Atlas Merchant Capital, former Barclays CEO), David Seamus (CIO, Atlas Merchant Capital)

Episode Overview

In this episode, Jennifer Senasi interviews Bob Diamond and David Seamus from Atlas Merchant Capital about their new $888 million deal to create Hyperliquid Strategies—a digital asset treasury focused primarily on Hype, the token of the Hyperliquid blockchain. The discussion covers their bullish stance on crypto’s macro environment, why traditional assets like Bitcoin and Ethereum are now complemented by Hype, and the evolution of institutional investment in blockchain infrastructure. The episode further explores the structure of Hyperliquid Strategies, its implications for U.S. equity investors, and perspectives on DeFi’s future role in mainstream finance.

Key Discussion Points and Insights

1. Macro Sentiment & The Evolving Regulatory Landscape

• Macro Environment for Crypto

  • Bob Diamond points to a positive macro environment for crypto. He attributes this to clearer, more favorable U.S. regulation, referencing the departure of Gary Gensler as SEC Chair and the current Treasury's more open posture.
  • Quote: “The fortunate demise of Gary Gensler as chair of the SEC, who was unwilling to listen to anything in the space...you compare and contrast that to the current administration…the macro environment, it’s very, very strong.” — Bob Diamond (02:20)

• Bitcoin and Ether Market Update

  • Despite a down day in the markets, both Bob and David note long-term optimism, especially given ongoing volatility and increasing institutional comfort.

2. The Unique Bullish Case for Hype and Hyperliquid

• Interest Shift Towards HYPE

  • Both guests highlighted their transition from observing to deeply believing in the Hyperliquid ecosystem and its token, Hype.
  • Quote: “If you look at the top 10 coins, the only one that has not been around for about a decade is Hype.” — Bob Diamond (06:02)
  • They emphasize due diligence into Hyperliquid’s exchange model and decentralized protocol as a major advantage, especially post-FTX.

• Lessons from FTX

  • Diamond attributes FTX’s collapse to lack of decentralization, not volatility, and sees Hyperliquid’s fully decentralized protocol as a critical improvement over prior failures.
  • Quote: “The lesson learned in FTX was very, very clear—having a decentralized protocol was critical.” — Bob Diamond (07:20)

• Hyperliquid’s Growth and Market Position

  • David Seamus details Hyperliquid’s substantial growth:
    • Two and a half years old, $1.5 billion/year free cash flow run rate.
    • Nine-month-old token with “reasonable valuation” compared to its cash flow and growth, rare in crypto.
    • Limited recognition among non-crypto natives and even some prominent bitcoiners, representing an opportunity.
  • Quote: “It has moved to the front of the minds of many crypto native people, but...certainly not on the minds of sort of the non crypto native yet.” — David Seamus (08:06)

3. Hyperliquid Strategies: Structure & Regulatory Innovation

• Access for U.S. Equity Investors

  • The deal creates a regulated, publicly traded vehicle for U.S. investors to gain direct exposure to Hype, previously difficult due to regulatory constraints on perpetual futures.
  • Quote: “This is an opportunity for US equity investors for the first time to really take part in this explosive growth.” — Bob Diamond (11:48)

• Deal Mechanics

  • The transaction uses a SPAC-like approach, merging $888M ($900M raised) into a small-cap New Jersey biotech firm, Sonnet Biotherapeutics, now to become Hyperliquid Strategies.
  • About one-third of capital is cash (to buy more Hype), two-thirds contributed as Hype token. This allows for tax-free exchanges for Hype holders and requires a shareholder vote (expected to close October–December 2025).
  • Quote: “[We] use a structure that allows for that. Unfortunately, that also requires shareholder approval, which takes a little bit longer.” — David Seamus (13:49)

• Institutional-Grade Governance

  • High-profile board includes Eric Rosengren (former Boston Fed president), Tom King (advisory banker), and Larry Leibowitz (ex-NYSE), combining crypto-native and Wall Street experience.
  • Quote: “Bringing the best of deep crypto knowledge and the best of those people who have been at the leading edge of financial services…” — Bob Diamond (11:48)

4. Hype’s Narrative vs. Bitcoin and Ethereum

• Distinct Role of Hype
  • David Seamus argues Hype’s structure is similar to tokenized equity: platform buybacks of tokens with its free cash flow makes holding Hype akin to owning equity in the exchange.
  • Quote: “It’s also pretty close to looking and feeling like tokenized equity.” — David Seamus (10:35)

5. DeFi’s Trajectory and the Role of Traditional Banks

• DeFi and Institutional Finance

  • Diamond sees a future “CeFi–DeFi blend”—banks that do not adopt blockchain will fall behind, while leading U.S. money center banks are quietly but seriously investing in blockchain infrastructure.
  • Quote: “Any large financial services organization...that doesn’t understand this and adopt the technology...will be left behind.” — Bob Diamond (15:44)

• Mainstream Adoption

  • Jennifer observes a drastic shift in institutional mood compared to just a year ago, with Diamond affirming near-universal private enthusiasm—even if banks “aren’t talking about it yet.”
  • Quote: “Everyone who matters is on board. The question is, are they talking about it yet? No...But I do believe within the next decade, that will be the underlying technology and infrastructure for the financial services industry.” — Bob Diamond (17:53)

6. What’s Next for Hyperliquid Strategies

• Milestones & Timeline
  • SEC approval of the S-4 filing is next.
  • Shareholder vote 30–45 days later.
  • Expected deal close: October–December 2025.
  • Strategy: ongoing capital raises and aggressive Hype accumulation, with structure similar to other digital asset treasuries (DATs).
  • Quote: “We will be thinking about thoughtful capital strategies to raise more capital and to put it to work to buy more Hype.” — David Seamus (18:27)

Notable Quotes and Timestamps

• On Macro Sentiment

  • “The macro environment...is very, very positive for crypto...it just feels like a much stronger macro environment.”—Bob Diamond (02:20)

• On Why HYPE

  • “We went from a neutral observer to very, very excited. Quickly.” —Bob Diamond (06:02)
  • "Having a decentralized protocol was critical. The money lost in FTX wasn’t because of volatility...it was…the lack of an opportunity for investors…to transact in a completely decentralized protocol.”—Bob Diamond (07:20)

• On Hyperliquid’s growth

  • “It’s been around for two and a half years and that’s really, really interesting and exciting.”—David Seamus (08:06)

• On DeFi and Institutional Finance

  • “I think the future of financial services will have blockchain as the underlying technology...any large financial services organization...that doesn’t understand this and adopt the technology...will be left behind.”—Bob Diamond (15:44)

• On Institutional Buy-In

  • “Everyone who matters is on board. The question is, are they talking about it yet? No.”—Bob Diamond (17:53)

Timestamps for Important Segments

• [02:20] Bob Diamond: Macro environment & regulatory shift
• [03:30] David Seamus: Market volatility, bullish long-term view on Bitcoin & crypto
• [06:02] Bob Diamond: Why focus on Hype/Hyperliquid
• [07:20] Bob Diamond & David Seamus: Lessons from FTX, Hyperliquid’s decentralized advantage
• [08:06] David Seamus: Hyperliquid’s revenue, valuation, and investor awareness
• [11:31] Jennifer/Bob: Access for U.S. equity investors, institutional structure
• [13:49] David Seamus: Structure and mechanics of Hyperliquid Strategies
• [15:44] Bob Diamond: DeFi, institutional banks, and blockchain’s future
• [17:53] Bob Diamond/Jennifer: Mainstream institutional adoption
• [18:27] David Seamus: Deal milestones and what’s next

Conclusion

This episode spotlights a major pivot in digital asset investing—driven by the arrival of large-scale, regulated investment vehicles for tokens beyond Bitcoin and Ethereum, with Hyperliquid and Hype at the forefront. Bob Diamond and David Seamus see blockchain as an inevitability for the financial industry, now supported by clear U.S. regulation and quiet but widespread institutional buy-in. With Hyperliquid Strategies, they aim to bring exposure to Hype into regulated U.S. markets, combining financial engineering, crypto-native insights, and blue-chip governance for the next wave of digital asset investment.