Bitwise is leaning into Hyperliquid as one of crypto’s breakout platforms this cycle, launching its BHYP ETF product amid what the firm describes as strong investor demand for HYPE exposure.
Bitwise Head of Research Ryan Rasmussen said the firm differentiates its offering by staking HYPE in-house to maximize yield for ETF investors. Bitwise also allocates 10% of management fees toward buying HYPE tokens for its own balance sheet “to align with the Hyperliquid community,” Rasmussen said. The firm publicly shares wallet addresses tied to its HYPE ETF reserves so investors can verify holdings on-chain.
Rasmussen argued Hyperliquid could become “one of the systems that most of traditional finance runs on in the future,” pointing to growth in perpetual futures, prediction markets, and spot trading as evidence the ecosystem is expanding. He also cited tokenized equities, stablecoins, and 24/7 trading as longer-term tailwinds, along with a recent Coinbase-Hyperliquid partnership tied to USDC liquidity as a sign of institutional momentum.
On tokenomics, Rasmussen noted that “99% of fees generated on this platform are used to buy and burn HYPE tokens,” drawing a comparison to traditional stock buybacks as a mechanism that may resonate with mainstream investors.
Rasmussen also cited a more favorable regulatory climate as a factor, saying projects like Hyperliquid can now launch with stronger token incentives given reduced fear of crackdowns compared to prior cycles. However, he acknowledged that U.S. regulatory scrutiny of perpetual futures markets remains a meaningful risk, as does pressure from traditional exchanges reportedly pushing regulators to examine decentralized competitors more closely. Inflation concerns, Federal Reserve policy, and geopolitical tensions were cited as additional macro risks.
On the broader institutional picture, Rasmussen said wealth managers are increasingly asking about portfolio allocation, tokenization, and stablecoins rather than questioning crypto’s basic viability — a shift he described as a significant improvement over conversations from just two years ago.
Source: Bitwise Launches HYPE ETF With In-House Staking and On-Chain Transparency