Bitwise launches BHYP spot ETF, targets $107 million inflows

Bitwise Asset Management’s new BHYP ETF began trading on NYSE Arca, giving investors direct exposure to Hyperliquid’s native token HYPE and the ability to earn staking rewards [3]. The fund entered the market with roughly $106.6 million in cumulative net inflows, making it the largest of the three Hyperliquid ETFs launched in May [1].

The product arrives amid a surge in demand for HYPE‑linked funds. Since their debut, the three Hyperliquid ETFs have attracted almost $172 million in net inflows, while Bitcoin ETFs lost about $5.6 billion over the same period [1]. Institutional buyers are treating HYPE like a high‑growth tech equity, drawn to the protocol’s fee‑generating architecture rather than speculative altcoins [1]. Hyperliquid’s “Assistance Fund” automatically routes 97‑99 % of trading fees into token buybacks, linking daily volume to token demand, while a $5 billion USDC treasury program on the platform yields 4 % and redirects 90 % of that yield back into the fund [1].

Bitwise’s filing notes that the ETF will also seek extra returns from HYPE staking, a feature not explicitly promised by competitors such as Grayscale or 21Shares [3]. The staking angle aligns with recent activity from venture capital firms: Andreessen Horowitz‑linked wallets accumulated about $67 million of HYPE and staked roughly $51 million in the past month [2]. Meanwhile, Coinbase has become the official treasury deployer for Hyperliquid’s USDC reserves, which have grown to around $5 billion since the network’s 2023 launch [2].

The launch underscores a broader shift toward revenue‑driven crypto products. Hyperliquid’s volume, now in the top‑10 of derivatives platforms, hit $492.7 billion in Q1, trailing Coinbase by $90 billion [3]. As volatile markets generate more trading opportunities, the protocol’s fee‑capture model could sustain investor interest even without a bull market [1].

If HYPE’s price continues its upward trajectory—up 65 % YTD and 182 % over 12 months—and the ETF’s staking component proves lucrative, institutional inflows may keep rising. The open question is whether the fund’s performance will attract enough new capital to offset the outflows seen in traditional Bitcoin ETFs and solidify Hyperliquid’s place in the derivatives space.