Bitwise Hyperliquid ETF Launches Friday on NYSE, Offering First U.S. Staking Rewards for HYPE

Bitwise Brings Staking to HYPE ETF

Bitwise Asset Management will launch its Hyperliquid ETF on the New York Stock Exchange this Friday under the ticker BHYP, marking a significant milestone as the first U.S. fund to offer Hyperliquid staking rewards to investors.

The announcement follows closely behind 21Shares' Hyperliquid ETF (THYP), which began trading on Tuesday and generated $1.8 million in trading volume on its debut day. According to 21Shares Director of Capital Markets Michael Friedman, the fund experienced its strongest performance on Thursday with $8.1 million in traded value and net inflows of approximately $4.9 million.

First Mover in Staking Rewards

Bitwise's offering distinguishes itself by incorporating staking capabilities through the company's proprietary Bitwise Onchain Solutions division. While 21Shares has indicated plans to stake a substantial portion of its HYPE holdings, Bitwise's fund will be the first to officially deliver these rewards to U.S. investors.

Hyperliquid has established itself as the leading onchain perpetual futures exchange, while also gaining traction as a platform for trading tokenized commodities and spot cryptocurrency markets. The platform's native HYPE token serves as the fee mechanism for transactions and consistently ranks among the top 15 tokens by trading volume, according to data from The Block.

Market Performance and Strategic Positioning

At the time of publication, HYPE has surged more than 13%. Excluding stablecoins, the token holds the position as the ninth-largest cryptocurrency by market capitalization at $10.5 billion, based on The Block's data.

Bitwise Chief Investment Officer Matt Hougan emphasized the platform's growing significance in the crypto ecosystem. "Hyperliquid has emerged as one of the most compelling investment opportunities in crypto today," Hougan stated. "When geopolitical tensions spiked on a Sunday morning in February, and traditional markets were closed, the world turned to Hyperliquid for price discovery. Bloomberg cited its crude oil contract as the most relevant price in the market."

Fee Structure and Regulatory Context

The BHYP fund will implement a 0.34% sponsor fee, though this will be waived entirely for the first month on the fund's initial $500 million in assets. Bitwise has clarified that the fund is not registered as an investment company under the Investment Company Act of 1940, meaning it lacks the regulatory protections typically associated with traditional ETFs and mutual funds.

Bitwise was the pioneer among asset managers, filing a Form S-1 to list a Hyperliquid ETF in September. The company was quickly followed by 21Shares and subsequently Grayscale in the race to bring HYPE exposure to traditional markets.

Coinbase Partnership Drives Interest

The recent surge in interest for Hyperliquid-related products may be partially attributed to Coinbase's announcement on Thursday that it will become the platform's official treasury deployer for USDC as Hyperliquid transitions away from its native USDH stablecoin. This partnership with a major regulated exchange adds institutional credibility to the Hyperliquid ecosystem.

Coinasity's Take

The simultaneous launch of multiple Hyperliquid ETFs represents a watershed moment for decentralized derivatives platforms entering traditional finance. Bitwise's inclusion of staking rewards sets a new standard for crypto ETF offerings, potentially pressuring competitors to enhance their value propositions. However, investors should carefully consider the regulatory disclosure that these funds lack traditional investment company protections. The strong initial performance of 21Shares' THYP, particularly following the Coinbase partnership announcement, suggests robust institutional appetite for exposure to leading DeFi infrastructure. As Hyperliquid continues demonstrating its utility during market stress events, these ETFs may serve as a bridge between decentralized finance innovation and mainstream investment portfolios.