Bitwise BHYP ETF Stakes $55M in HYPE After Record Inflows

Steady attention without excessive speculation.

What Is the BHYP ETF?

The BHYP ETF is a spot grantor trust that holds actual HYPE tokens. Unlike futures-based products, it provides direct exposure to Hyperliquid’s native token. It began trading on the NYSE on May 15, 2026.

Bitwise HYPE ETF designed the fund with in-house staking as a core feature. Through Bitwise Onchain Solutions, the firm stakes a large portion of the fund’s HYPE holdings. This means staking rewards accrue to the fund’s net asset value over time, subject to fees and protocol risks.

Anchorage Digital Bank N.A. serves as custodian for the trust’s HYPE holdings. The fund charges a 0.34% sponsor fee, though Bitwise waived it for the first month on the first $500 million in assets.

On-Chain Data Shows Rapid Accumulation

According to Arkham Intelligence, Bitwise has published its BHYP-related wallet addresses for full transparency. The firm’s staking activity and token purchases are trackable in real time on the Hyperliquid explorer.

Cumulative net inflows have reached roughly $55 to $57 million since launch. AUM climbed to approximately $62 to $63 million by late May, according to multiple reports from CoinDesk and Bloomberg.

Bitwise CEO Hunter Horsley highlighted a record single-day inflow of roughly $19 million on X. That made BHYP the largest HYPE ETF by daily net buying at the time.

Why Bitwise Chose In-House Staking for the BHYP ETF

Most crypto ETFs simply hold spot tokens. Bitwise took a different approach with BHYP by staking through its own infrastructure instead of relying on third-party validators.

Matt Hougan, Bitwise’s Chief Investment Officer, explained the reasoning. “Hyperliquid has emerged as one of the most compelling investment opportunities in crypto today,” Hougan said in the official launch announcement. “BHYP is designed to give investors convenient exposure to that potential, with the added benefit of in-house staking to seek to maximize returns.”

Hougan also pointed to Hyperliquid’s tokenomics as a key factor. “Hyperliquid’s token is explicitly designed so that rising trading activity on the Hyperliquid platform directly benefits token holders,” he said. Nearly 99% of Hyperliquid’s trading fees go toward HYPE buybacks, creating a structural demand loop tied to platform usage.

Capital Rotates Into Altcoin ETFs

BHYP’s rapid growth fits a broader trend. CoinDesk has reported capital rotating out of Bitcoin and Ethereum ETFs into altcoin products like BHYP and THYP. Investors appear to be seeking higher-growth exposure in a friendlier regulatory environment.

According to DefiLlama, Hyperliquid’s total value locked remains in the multi-billion dollar range. HYPE trades at approximately $73 with a market cap near $18 billion and a circulating supply of about 254 million tokens.

The Block also reported that Bitwise allocates 10% of BHYP management fees to purchase HYPE for its corporate balance sheet. That adds another layer of alignment between the fund manager and the underlying asset.

Open Questions and Risks

Some observers have raised concerns about concentration risk. One asset manager holding a large staked position could have implications for Hyperliquid’s proof-of-stake network decentralization. However, no major red flags have surfaced so far.

The exact mechanics of how staking rewards pass through to ETF shareholders remain unclear. Rewards increase the fund’s NAV rather than flowing as direct cash distributions. Lockup and redemption details beyond standard Bitwise HYPE ETF mechanics are also not fully public.

A breakdown of retail versus institutional buyers has not been disclosed. The sustainability of inflows relative to HYPE’s circulating supply and future token unlocks is also an open question.

Regulatory comfort with altcoin ETPs is improving, but it remains an evolving area. No specific regulatory concerns have been raised about BHYP to date, according to SEC filings.

What Comes Next for the BHYP ETF

Bitwise’s $55 million staked position represents a significant bet on Hyperliquid’s long-term growth. If trading volumes continue to rise on the platform, the 99% fee-to-buyback mechanism could create sustained demand for HYPE.

For now, the on-chain data tells a clear story. Institutional money is flowing into HYPE at a pace that few altcoin ETFs have matched this early. Whether that momentum holds will depend on Hyperliquid’s continued execution and broader market conditions.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.