Bitwise Debuts HYPE Fund Amid Surging Institutional Interest
Bitwise Asset Management has launched the BHYP Hyperliquid fund on the New York Stock Exchange, marking the second U.S.-listed investment vehicle tied to the Hyperliquid ecosystem this week. The fund provides direct exposure to HYPE, Hyperliquid's native token, while offering staking rewards through Bitwise's in-house staking division.
Hyperliquid, a decentralized derivatives exchange that debuted in 2023, has quickly become a major player in the DeFi space. By 2025, the platform had processed $2.9 trillion in trading volume and accounted for approximately 60% of global on-chain derivatives open interest, according to DefiLlama. The HYPE token, central to the ecosystem, is used for staking, governance, and trading fee incentives.
HYPE's market capitalization currently stands at $14.85 billion, placing it as the 10th-largest cryptocurrency. The token is trading at $44.54 as of May 15, 2026, reflecting a 20% surge earlier in the day, fueled by the launch of Bitwise's ETF and growing institutional interest.
Institutional Players Drive Demand
The launch of the BHYP fund underscores a broader wave of institutional interest in Hyperliquid. Earlier this week, 21Shares launched its THYP Hyperliquid ETF in the U.S., netting $1.2 million in inflows and $1.8 million in trading volume on its first day. Grayscale Investments is also awaiting regulatory approval for its proposed Hyperliquid fund.
On-chain data highlights the activity of major players. Venture capital giant Andreessen Horowitz reportedly accumulated $67 million worth of HYPE in April, staking $51 million of it. Coinbase, meanwhile, announced its role as the official treasury deployer for USDC on Hyperliquid, where the stablecoin's supply has grown to $5 billion since the network's 2023 launch.
ETF Details and Market Impact
The BHYP fund offers investors not only spot exposure to HYPE but also staking rewards, a key utility of the token. Bitwise, which manages $11 billion in crypto assets, has set the fund's sponsor fee at 0.34%, waiving it for the first month on the initial $500 million in assets. As institutional investors increasingly explore HYPE-aligned products, the fund's structure could catalyze additional inflows into the token.
However, traders should remain cautious amid the token's volatility. On May 12, a whale reportedly exited a $16.9 million HYPE position, while a major token unlock on May 6 released 9.92 million tokens—worth approximately $375.84 million at the time—into circulation. Despite these events, HYPE's price has remained resilient, partially buoyed by ETF-related demand and staking activity.
Outlook
As Hyperliquid cements its position in the derivatives space, the growing ecosystem around HYPE, including ETFs and staking opportunities, is drawing significant attention from institutional and retail investors alike. The next key development to watch is the fate of Grayscale's proposed Hyperliquid fund, which could add further momentum to an already active market.