Wintermute wins 76% of Hyperliquid data auctions, prompting scrutiny

The auctions grant winners earlier access to information about orders awaiting processing—milliseconds that trading algorithms can use to adjust quotes or hedge positions elsewhere before trades execute. Hyperliquid also lets users pay for priority in processing their own orders, a separate mechanism that affects execution rather than access to incoming order data.

Wintermute declined to confirm its share of wins or say how much it spends. Founder and CEO Evgeny Gaevoy said the firm uses the mechanism mainly for cryptocurrency trading, not derivatives tied to traditional assets. He argued that paying for speed is already common in financial markets, where firms invest in low-latency networks, microwave towers and colocation. Hyperliquid Labs, the Singapore-based developer, said participation is open to everyone and payments are publicly recorded onchain. “Priority fees make latency competition open and transparent,” a spokesperson told Bloomberg.

The concentration has drawn criticism from DRW Holdings founder Don Wilson, who questioned the system’s fairness and how US regulators might view it in an Oct. 31 post on X. He compared the arrangement with traditional exchanges, where firms seek faster access by placing servers near trading infrastructure.

The debate comes as Hyperliquid moves beyond crypto derivatives into perpetual contracts tied to equities, commodities and indexes. Open interest topped $18 billion in September, spanning crypto and traditional-asset markets. On Oct. 29, Intercontinental Exchange, the parent of the New York Stock Exchange, announced a partnership with Trade.xyz to develop regulated US perpetual futures using Hyperliquid technology. ICE plans to operate the markets and invest strategically in Trade.xyz, but the proposal requires regulatory approvals, including from the Commodity Futures Trading Commission. It is unclear whether the existing data auctions would be used. Separately, Kraken parent Payward has outlined plans for regulated Hyperliquid-based futures through Bitnomial and NinjaTrader Clearing, with participation limited to approved customers in permissioned markets.