DeutschHyperliquid is currently one of the most exciting projects in the crypto market. The decentralized trading platform is primarily known for perpetual futures, but is now increasingly coming into the focus of institutional investors. Bitwise is a big part of that.
The crypto asset manager describes Hyperliquid’s HYPE token as one of the most undervalued assets in the crypto market. Bitwise argues that the market still values Hyperliquid too much as a pure crypto derivatives exchange and underestimates the platform’s broader ambitions. According to CoinDesk, Bitwise sees Hyperliquid more as an emerging trading super-app that could cover not only crypto in the future, but also stocks, commodities, forex, and prediction markets.
This creates a new narrative: Hyperliquid is no longer just a DeFi project for crypto traders, but could become a broader financial market infrastructure.
What is Hyperliquid?
Hyperliquid is a decentralized trading platform that became known primarily through the trading of crypto perpetual futures. Such products enable leveraged bets on price movements without a classic expiration date like traditional futures.
The difference to centralized exchanges lies in the infrastructure. Hyperliquid runs on-chain and aims to offer users a fast, liquid, and transparent trading experience. In the meantime, the project is expanding its offering beyond classic crypto markets. The expansion also includes stocks, commodities, and prediction markets. This expansion is exactly why Bitwise values the project significantly higher than many market participants.
Our longread: Everything you need to know about Hype
Bitwise calls HYPE undervalued
Bitwise CIO Matt Hougan sees two valuation errors in the market. First, the potential target market of Hyperliquid is underestimated. Second, not enough consideration is given to how much the HYPE token can benefit directly from activity on the platform.
The token model is particularly important. Around 99% of the trading fees on Hyperliquid are used for HYPE buybacks. This creates a more direct link between platform growth and token demand than with many other crypto projects. Bitwise therefore compares HYPE more to exchange-related business models like Robinhood or CME than to classic DeFi governance tokens.
According to CoinDesk, Hougan estimates that Hyperliquid generates annualized revenues between $800 million and $1 billion. At the same time, measured by the buyback flow, HYPE is valued at about 10 to 14 times, which Bitwise considers attractive compared to traditional exchange operators.
The BHYP ETF brings HYPE to the stock exchange
Bitwise has launched the Bitwise Hyperliquid ETF with the ticker BHYP. According to an official statement from Bitwise, the fund began trading on the NYSE on May 15, 2026. Bitwise describes BHYP as one of the first spot Hyperliquid ETPs in the US and the first with an internal staking offer. The management fee is 0.34%, but will be set to zero for the first month for the first $500 million in assets under management.
This is relevant for the market because it also makes HYPE accessible to investors who do not want to trade directly on-chain. The ETF offers regulated access to a project that was previously known primarily among active crypto traders.
According to FXStreet, BHYP recorded a trading volume of around $4.3 million on its first day of trading, putting it at the top of new altcoin ETF launches in 2026. Crypto Briefing also reported that the Bitwise Hyperliquid ETF reached more than $30 million in assets just a few days after its launch.
Bitwise buys HYPE with its own ETF fees
Another step by Bitwise is particularly striking. The asset manager announced that it would use 10% of the management fees from the Bitwise Hyperliquid ETF to buy HYPE and hold it on its own balance sheet. According to FXStreet, the purchased tokens are subject to a minimum holding period of twelve months.
The Block also reports that Bitwise intends to use part of the management fees from BHYP to accumulate HYPE on its own balance sheet. The company wrote on X that 10% of the management fee should be used for holding HYPE.
This step is unusual. An ETF provider normally earns fees with a product, but does not necessarily reinvest this income in the underlying token. Bitwise is linking its own economic interest more closely to the success of Hyperliquid here.
Why this step is controversial
The approach can be interpreted positively or critically. From the perspective of HYPE supporters, it is a strong signal. Bitwise not only earns fees with the product, but also participates in the token itself. This can create trust and generate additional demand.
Critics, on the other hand, could see a conflict of interest problem. When an asset manager offers a product on a token, publicly describes this token as undervalued, and at the same time uses fee income to buy the same token, a close connection is created between analysis, product distribution, and its own balance sheet position.
This does not automatically have to be problematic. Transparency is crucial. Bitwise has communicated its own strategy publicly. Nevertheless, market participants should understand that such structures raise new questions: How independent is the valuation? How much do ETF inflows influence the demand for HYPE? And how sustainable is a model that depends heavily on trading activity and token buybacks?
Hyperliquid benefits from a larger trend
The HYPE focus fits into a broader development. Crypto projects that can demonstrate real revenue, buybacks, or fee-based token models are receiving increasing attention. The market is differentiating more strongly between pure narratives and protocols with measurable activity.
Hyperliquid also benefits from the growth of decentralized derivatives exchanges. While classic DeFi applications have lost momentum in many phases, trading in perpetual futures remains a high-volume segment. Hyperliquid has managed to build a strong brand and high trading activity in this area.
At the same time, the imagination is growing beyond the crypto market. MarketWatch reported, for example, that investors are increasingly using platforms like Trade.xyz, which build on Hyperliquid, to trade pre-IPO perpetual contracts on private companies like SpaceX. In this context, Hyperliquid is described as infrastructure for new forms of price discovery, not just for classic crypto assets.
The risks remain high
Despite the strong narrative, HYPE remains a high-risk asset. Hyperliquid continues to be heavily dependent on trading volume. If activity on the platform decreases, the basis for buybacks and token demand also weakens.
In addition, there are regulatory risks. Trading in derivatives, prediction markets, tokenized assets, or pre-IPO products is politically and legally sensitive. Especially if Hyperliquid really expands beyond crypto into classic financial markets, regulatory attention is likely to increase.
Even ETF products do not change the fact that the underlying token remains volatile. Regulated access does not automatically make an asset safer. It primarily makes it easier to trade.
Conclusion: Bitwise makes HYPE an institutional topic
Bitwise is lifting Hyperliquid onto a new stage. The BHYP ETF makes HYPE more easily accessible to traditional investors, while the decision to hold 10% of the ETF fees in HYPE sends a clear signal to the market.
Bitwise’s central thesis is: Hyperliquid is still valued too narrowly as a crypto derivatives exchange and could become a significantly larger trading infrastructure in the long term. If this thesis holds true, HYPE would be more than just another altcoin. The token would then be a kind of stake in the growth of an on-chain trading platform.
At the same time, this exact story is associated with risks. The valuation depends heavily on trading volume, regulatory development, and the success of the token buyback model. For the crypto market, Hyperliquid is nevertheless one of the most exciting examples of how DeFi, exchange infrastructure, and institutional products are increasingly merging.
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