Bitwise has committed to designating 10% of the management fee from its HYPE ETF for the acquisition of HYPE tokens to bolster its balance sheet.
Summary
- Bitwise has announced that it will allocate 10% of the management fee from its BHYP Hyperliquid ETF to purchase and hold HYPE tokens on its balance sheet.
- The BHYP ETF made its debut on NYSE on May 15 with a sponsor fee of 0.34%, becoming the first US product to offer in-house staking through Bitwise Onchain Solutions.
- Together with 21Shares’ THYP product, the two Hyperliquid ETFs have attracted over $5.6 million in net inflows since their launch.
Bitwise Asset Management has revealed its intent to allocate 10% of the management fees generated from its Bitwise Hyperliquid ETF (NYSE: BHYP) to acquire HYPE tokens for its balance sheet. This approach aligns with Hyperliquid’s tokenomics, which directs roughly 99% of protocol revenue towards HYPE repurchase through its Assistance Fund.
“Hyperliquid’s token is strategically designed so that increased trading activity on the Hyperliquid platform benefits its token holders directly,” said Matt Hougan, Chief Investment Officer of Bitwise. “This has historically resulted in strong returns, and we believe it’s one of the most promising assets in the crypto market.”
HYPE ETF Structure and Buyback Implications
The BHYP ETF launched on NYSE on May 15 with an initial sponsor fee of 0.34%, waived for the first month on the initial $500 million in assets. It stands out as the only US-listed Hyperliquid product that stakes HYPE through its own infrastructure, rather than depending on third-party solutions. According to crypto.news, HYPE has increased to approximately $46 after the launch, recovering about 65% since early 2026.
This 10% allocation from management fees creates an additional avenue for capital influx into HYPE, beyond staking. Bitwise stakes the fund’s assets through Bitwise Onchain Solutions, with rewards flowing back to the fund after a 15% fee. Enhanced buybacks from management fees enable institutional capital to enter HYPE through two channels.
Competing with BHYP is 21Shares’ THYP product, which launched earlier that week on Nasdaq and secured around $1.2 million in inflows on its first day. Together, both HYPE ETFs have garnered over $5.6 million in total net inflows.
Importance of the Fee Model for HYPE
Hyperliquid achieved an impressive $2.9 trillion in trading volume in 2025, a remarkable increase of over 400% year on year, and currently accounts for about 60% of all on-chain derivatives open interest worldwide. HYPE’s market capitalization exceeds $11 billion, positioning it as the tenth largest crypto asset by market cap.
As detailed in crypto.news’s April filing update, Bloomberg ETF analyst Eric Balchunas highlighted the introduction of the BHYP ticker and fee information as signs that the fund was nearing its launch.
The fee-to-buyback commitment aligns Bitwise’s interests closely with the community-oriented approach of Hyperliquid. Each dollar derived from management fees translates into a portion of HYPE that remains on Bitwise’s balance sheet indefinitely, creating a demand mechanism that scales in line with the fund’s assets under management (AUM) and ETF inflows.
