Hyperliquid News Today: Bitwise Files HYPE Token ETF With Staking Yields, 0.67% Fee

The proposed ETF would track the price of the HYPE token, the native token of the Hyperliquid platform, and trade under the ticker symbol BHYP if approved. The fund would be listed on NYSE Arca and would hold HYPE tokens directly, generating returns through staking. This structure mirrors recent crypto ETF designs and reflects growing institutional demand for regulated exposure to digital assets.

Bitwise also disclosed that it has already secured seed funding for the fund, a sign that the ETF could launch soon if regulators grant approval. The filing includes details about the fund's fee structure, pricing benchmark, and custodial framework, all of which are typically addressed in the final stages of the approval process.

Key Details of the Proposed ETF

The Bitwise Hyperliquid ETF will be physically backed, meaning it will hold actual HYPE tokens rather than using futures or synthetic exposure. This design aims to provide investors with a direct claim to the underlying asset and aligns with recent trends in the crypto ETF market. The fund will be managed with a 0.67% annual fee, slightly above the industry average for similar products.

The fund's pricing benchmark will aggregate data from major Hyperliquid trading venues to ensure accurate and transparent valuation. Bitwise emphasized that this method supports standardized pricing and reduces exposure to market volatility. The firm also plans to stake a portion of the HYPE holdings, which could generate additional returns for investors while maintaining regulatory compliance.

Custody of the HYPE tokens will be handled by Anchorage Digital Bank, a licensed custodian with experience in digital asset management. The filing states that all assets will be held in segregated accounts to minimize counterparty risk. This approach has become a standard requirement for crypto ETFs seeking SEC approval.

Market Reaction and Strategic Implications

Bitwise's decision to focus on the HYPE token reflects a broader industry trend toward niche crypto ETFs that target specific platforms or use cases. As the crypto market matures, investors are showing a preference for products that offer direct exposure to innovative blockchain projects.

The Hyperliquid platform, which focuses on derivatives trading, has gained traction in the DeFi space, making it an attractive asset for institutional investors.

The proposed ETF also highlights the importance of staking strategies in modern crypto fund structures. By generating staking rewards, the fund could enhance returns while maintaining liquidity. This model has gained popularity as investors seek ways to optimize yields in a competitive market. However, it also introduces new risks related to governance and operational complexity, which regulators are likely to scrutinize.

The amended S-1 filing has increased speculation that the ETF could receive regulatory approval in the near term. Market participants are closely watching the SEC's response, particularly given the agency's recent approval of Bitcoin and Ethereum spot ETFs. The move signals growing regulatory acceptance of crypto products and could pave the way for more diversified exposure to blockchain ecosystems.

Analysts Weigh In

Industry analysts have noted that the approval of the Bitwise Hyperliquid ETF could have broader implications for the crypto market. It may encourage more traditional asset managers to launch similar products, further expanding institutional participation. This, in turn, could increase demand for HYPE tokens and other digital assets, potentially driving up prices and liquidity.

At the same time, analysts caution that regulatory uncertainty remains a key challenge. While the SEC has shown a more favorable stance toward crypto ETFs in recent months, there is still a risk of last-minute delays or additional requirements. Investors should also be mindful of market volatility, as crypto assets remain subject to sharp price swings and macroeconomic factors.

The filing underscores Bitwise's role as a leader in the crypto ETF space. The firm has been at the forefront of innovation, launching the first Bitcoin spot ETF in the U.S. earlier this year. Its latest proposal builds on that momentum and reflects a strategic shift toward more specialized crypto products.