Quick Takeaways
- Bitwise is launching a new ETF (BHYP) tracking Hyperliquid’s HYPE token, debuting on NYSE on May 15, just days after 21Shares’ THYP started trading.
- BHYP offers a low-cost, in-house staking platform, aiming to let investors tap into Hyperliquid’s rapid growth, which now holds a $11B market cap.
- Hyperliquid dominates with 60% of global on-chain perpetual DEX open interest, capable of processing 200,000 orders/sec and emerging as a key on-chain market player.
- The ETF charges a 0.34% fee, initially waived on the first $500M; meanwhile, HYPE’s rising activity is fueling strong returns and increasing on-chain crypto activity.
Bitwise Set to Launch Hyperliquid (HYPE) ETF
New ETF Targets Hyperliquid’s Popular HYPE Token
Bitwise plans to launch an exchange-traded fund (ETF) focused on Hyperliquid’s HYPE token. The ETF will begin trading on May 15 under the ticker symbol BHYP on the New York Stock Exchange (NYSE). This move comes just days after 21Shares started trading a similar product, called THYP, which quickly attracted $1.8 million in trading volume on its first day.
Bitwise emphasizes that BHYP will be the first HYPE ETF to use its own staking infrastructure. The company says the fund offers investors an easy and low-cost way to gain exposure to Hyperliquid’s growth. Industry experts have reacted positively. Marc Antonio, head of DeFi at Galaxy, praised the development, saying, “Damn Matt Hougan and Bitwise are cooking.”
Why Hyperliquid Gains Attention
According to DeFi Llama data, Hyperliquid accounts for about 60% of global on-chain perpetual decentralized exchange (DEX) open interest. The platform can process up to 200,000 orders per second, maintaining high reliability. Bitwise believes that these features put Hyperliquid on track to become a leading player as more capital moves onto blockchain networks.
Matt Hougan, Chief Investment Officer at Bitwise, explained that Hyperliquid proved its importance during early 2023. When traditional markets closed because of geopolitical tensions, traders turned to Hyperliquid for price discovery. Hougan called Hyperliquid “one of the most compelling investment opportunities in crypto today.”
Since its launch two years ago, HYPE has become the tenth-largest cryptocurrency by market cap, exceeding $11 billion. Bitwise noted that rising trading activity benefits token holders directly and has led to strong historical returns.
Fees and Market Response
The prospectus shows BHYP will charge a 0.34% sponsor fee. However, Bitwise plans to waive this fee for the first month for the first $500 million in assets. The company also clarified that the ETF isn’t registered as an investment company, so it does not offer the same protections as traditional ETFs or mutual funds.
Earlier this week, 21Shares launched its own HYPE-based ETF, THYP. It saw a significant start, with nearly $5 million in trading volume on the second day alone and a total net inflow of $7.42 million. Still, some analysts note that such rapid inflows are common in new crypto products and don’t necessarily predict long-term success.
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