Bitwise Moves Closer to Launching Spot Hyperliquid ETF Amidst Competitive Landscape
By John Nada·Apr 11, 2026·4 min read
Bitwise Asset Management is nearing the launch of its spot Hyperliquid ETF, setting a management fee and entering a competitive market. This move reflects growing institutional interest in crypto.
Bitwise Asset Management has taken a significant step toward launching its spot Hyperliquid exchange-traded fund (ETF) by filing a second amendment with the U.S. Securities and Exchange Commission (SEC). This latest amendment includes the proposed ticker $BHYP and sets a management fee at 0.67%, a strategic move that suggests an imminent launch, according to Bloomberg senior ETF analyst Eric Balchunas. The competitive landscape is heating up, with other asset managers like Grayscale and 21Shares also pursuing similar products.
Notably, Bitwise was the first to file for the Hyperliquid ETF in September, followed by 21Shares and Grayscale in subsequent months. This sequence underscores Bitwise's proactive stance in a rapidly evolving market environment. If approved, Bitwise's ETF will trade on the NYSE Arca, allowing investors direct exposure to the spot price of Hyperliquid, a move that could attract significant investment from those looking to capitalize on the growing digital asset market. The Hyperliquid token (HYPE) has demonstrated substantial price performance, up approximately 182% over the last year.
This remarkable increase could be influencing Bitwise's timing for the ETF launch, as the firm aims to leverage positive market sentiment. Furthermore, Balchunas pointed out that HYPE is currently up around 200% in the past year, emphasizing that Bitwise is likely attempting to strike while the iron is hot. The timing of the ETF filing aligns with HYPE's impressive trajectory, which may enhance investor interest in the product. In addition to the price performance of HYPE, Hyperliquid has recently ranked among the top 10 crypto derivatives platforms by trading volume.
According to blockchain analytics platform CoinGlass, Hyperliquid generated a staggering $492.7 billion in trading volume during Q1 alone, placing it just shy of Coinbase in terms of overall trading activity. This accomplishment reflects the platform's growing significance in the market and indicates a robust demand for derivatives linked to digital assets. The launch of the Hyperliquid ETF also carries implications for institutional investment in the cryptocurrency space. As digital asset regulation continues to evolve, there is an increasing institutional interest in crypto-linked investment products.
The SEC's response to these applications, including Bitwise's, could set important precedents that would shape the future of crypto ETFs and institutional participation in the industry. This is particularly relevant as other asset managers like Grayscale and 21Shares are also pushing for similar products, highlighting a burgeoning competition in the market. What sets Bitwise apart in this competitive landscape is its strategy to generate additional returns from HYPE staking, as indicated in the firm's first filing amendment from December. This aspect of the fund is not explicitly addressed in the filings from Grayscale and 21Shares, which may give Bitwise a competitive edge in attracting investors who are interested in maximizing their returns through staking mechanisms.
By incorporating staking into the fund's framework, Bitwise is not only enhancing the potential returns for investors but also aligning itself with the growing trend of yield generation in the cryptocurrency space. The filing comes at a time when the broader crypto market has experienced some volatility, yet HYPE has shown resilience, with its price remaining strong amidst fluctuations. As of now, the price of HYPE is around $41.96, reflecting a 65% increase since the start of 2026. This performance is especially noteworthy given the challenges faced by the cryptocurrency sector earlier in the year.
It suggests that despite market uncertainties, there is a solid foundation of support for Hyperliquid and its associated products. The potential approval of Bitwise's Hyperliquid ETF could catalyze further institutional adoption of cryptocurrencies as investment vehicles. As more traditional investors seek exposure to the digital asset space, products like the Hyperliquid ETF may pave the way for greater acceptance and integration of cryptocurrencies into mainstream financial portfolios. The ETF market has seen rapid growth in recent years, and the introduction of a spot ETF tied to a cryptocurrency could provide a new avenue for investors who are hesitant to directly purchase digital assets.
As the landscape for cryptocurrency investment products continues to shift, the actions of companies like Bitwise, Grayscale, and 21Shares will be closely monitored by market participants. The SEC's decisions on these ETF applications will not only affect the companies involved but could also have wider implications for the cryptocurrency sector as a whole. The outcome of these filings will likely influence how other asset managers approach the creation of similar products in the future, thus shaping the competitive dynamics of the digital asset market. In conclusion, Bitwise's move to file for the spot Hyperliquid ETF amid a competitive field reflects both the firm's strategic planning and the growing institutional interest in crypto-linked products.
The developments surrounding HYPE's price performance and trading volume further underscore the potential for significant investor engagement as the market evolves.