Ideally one would decap the cysts and then hatch them out in pop bottles. This sterilizes the cyst as well as changing the hard outer shell to a soft translucent covering that doesn't lodge in digestive tracts. They also hatch out a little earlier.
They are best fed to the seahorses as soon as they are hatched before they consume the food sack.
Alternately they can be ongrown to later stage of growth and then gut loaded before being fed to the seahorses.
My decapped cysts hatch out within 18 hours of decapping them.
Once they have hatched, let the culture sit for a few minutes to allow the waste to settle as much as possible and then siphon off the swimming nauplii, capture in a mesh or coffee filter, rinse and feed to your seahorses.