Bitwise Launches HYPE-linked Fund as Hyperliquid Interest Grows | Crypto ETF News
Crypto ETF news: Bitwise Launches HYPE-linked Fund as Hyperliquid Interest Grows. This update explains what changed, why it matters for institutional adoption, market flows, and investor sentiment, and what the crypto market should watch next.
Institutional And ETF Update
Bitwise Asset Management has launched a US-listed investment product tied to Hyperliquid, offering investors spot exposure to the token and staking rewards linked to the decentralized derivatives platform.The fund, trading under the ticker BHYP on the New York Stock Exchange, is the second US-listed Hyperliquid product to launch this week. Bitwise said the fund plans to stake a significant portion of its HYPE (HYPE) holdings through its in-house staking division.Hyperliquid is a decentralized trading-focused layer 1 blockchain launched in 2023 that offers perpetual futures, spot trading and lending services. Bitwise said the platform processed about $2.9 trillion in trading volume in 2025 and accounted for roughly 60% of global onchain derivatives open interest as of May 5, citing DefiLlama data.HYPE was trading at around $44 on Friday with a market capitalization of roughly $11.22 billion, making it the 10th-largest cryptocurrency by market value, according to CoinMarketCap data. The token is used for staking, governance and ecosystem participation.Bitwise, which manages about $11 billion in client assets across crypto investment products including exchange-traded funds, private funds and staking strategies, said the fund will charge a 0.34% sponsor fee, which will be waived for the first month on the fund’s first $500 million in assets.HYPE token price. Source: CoinGeckoRelated: Wells Fargo lifts Ether ETF holdings in Q1 as Bitcoin positions shiftHyperliquid draws growing institutional interestThe launch comes as institutional interest in Hyperliquid and HYPE-linked investment products expands across crypto asset managers, venture capital firms and trading platforms.Earlier this week, 21Shares launched its THYP Hyperliquid fund in the US, drawing about $1.2 million in net inflows and $1.8 million in trading volume on its first trading day, according to Bloomberg ETF analyst James Seyffart. Grayscale Investments is also awaiting a decision on its proposed Hyperliquid fund.On Wednesday, onchain analytics account Lookonchain said wallets linked to venture capital company Andreessen Horowitz had accumulated about $67 million worth of HYPE over the previous month and staked roughly $51 million worth of the token.Source: LookonchainThe following day, Coinbase announced it would become the official treasury deployer for USDC (USDC) on Hyperliquid, where the stablecoin’s supply has grown to around $5 billion since the network launched in 2023, according to DeFiLlama data.As Hyperliquid gains traction as a decentralized derivatives exchange, centralized crypto companies have also expanded deeper into perpetual futures and offshore derivatives markets through new trading products and international launches.Earlier this year, Coinbase launched stock perpetual futures for eligible non-US users, while Kraken rolled out tokenized equity perpetual futures tied to assets including Nvidia (NVDA), Apple (AAPL) and Tesla (TSLA) for offshore clients.Magazine: ETH stalls at $2.4K five times, SOL to rally to $120: Market Moves
Why This ETF News Matters
First, this development may affect institutional demand, exchange flows, market liquidity, and broader investor confidence. In addition, it may influence custody trends, fund positioning, and future crypto product approvals. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for filing updates, approval decisions, inflow and outflow data, custody changes, and asset manager commentary. In particular, any new developments involving BlackRock, Grayscale, Fidelity, or major spot ETF products could directly affect the broader crypto market.
