The launch comes only days after another HYPE ETF, 21Shares’ THYP, started trading, racking up $1.8M on its debut.
Asset manager Bitwise is set to launch an exchange-traded fund tracking Hyperliquid’s native HYPE token.
The ETF will start trading on May 15 under the ticker BHYP on the New York Stock Exchange (NYSE).
Capitalizing on Hyperliquid’s Growth and Dominance
Bitwise said that BHYP is the first HYPE ETF to use an in-house staking infrastructure, with the firm adding that the fund was designed to give investors a convenient and low-cost way to participate in Hyperliquid’s growth. Reacting to the development, Galaxy’s head of DeFi, Marc Antonio, wrote, “Damn Matt Hougan and Bitwise are cooking.”
DeFi Llama data shows that Hyperliquid makes up about 60% of global on-chain perpetual DEX open interest, with the network being capable of processing up to 200,000 orders per second while maintaining a strong reliability track record. Bitwise believes that because of this, the platform is on the road to becoming one of the biggest beneficiaries as capital markets continue moving on-chain.
Matt Hougan, Chief Investment Officer at Bitwise, said the chain proved its relevance during a period of geopolitical tensions earlier this year, when traditional markets were closed, and traders turned to it for price discovery.
“Hyperliquid has emerged as one of the most compelling investment opportunities in crypto today,” said Hougan.
Additionally, Hype has risen to become the tenth largest crypto asset in the world since launching two years ago, with a market cap of over $11 billion.
“Hyperliquid’s token is explicitly designed so that rising trading activity on the Hyperliquid platform directly benefits token holders. This has translated into historically strong returns,” he added.
Bitwise Shares Fees
The fund’s prospectus shows that BHYP carries a 0.34% sponsor fee, which Bitwise plans to waive for the first month on the first $500 million in assets. The company also clarified that the product hasn’t been registered as an investment firm, meaning it doesn’t have the same protections as ETFs and mutual funds.
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Earlier in the week, 21Shares launched a similar product tracking HYPE dubbed THYP, which pulled about $1.8 million in trading volume on its first day, a feat described by analyst James Seyffart as “nothing too crazy.”
It has since racked up $7.42 million in cumulative net inflow, with data from SoSoValue showing that yesterday’s flow alone came in at nearly $5 million.
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