New Investment Vehicle Commits Double-Digit Allocation of Management Fees to Underlying Asset Purchases

In a strategic move, Bitwise Asset Management has unveiled plans to allocate 10% of the management fees generated by its Bitwise Hyperliquid ETF, listed on the NYSE under the ticker BHYP, towards purchasing and holding $HYPE tokens on its balance sheet. This approach mirrors the tokenomics of Hyperliquid, which directs approximately 99% of its protocol revenue into an Assistance Fund for $HYPE buybacks.

According to Matt Hougan, Chief Investment Officer at Bitwise, the Hyperliquid token is designed to reward token holders as trading activity increases on the platform, resulting in strong historical returns and making it one of the most exciting assets in the cryptocurrency space.

The BHYP ETF, which debuted on the NYSE on May 15, boasts a unique structure, with a sponsor fee of 0.34% that is waived for the first month for the initial $500 million in assets. Notably, it is the only US-listed Hyperliquid product that stakes $HYPE directly through the issuer's infrastructure, rather than relying on a third-party provider. Following its launch, $HYPE experienced a rebound to around $46 and has since recovered by approximately 65% since the start of 2026.

By committing 10% of its management fees to $HYPE purchases, Bitwise is introducing a secondary channel for capital to flow into the token, complementing the existing staking mechanism. The firm's Bitwise Onchain Solutions subsidiary stakes the fund's holdings, with rewards being reinvested into the fund after deducting a 15% fee. This dual-channel approach enables institutional capital to flow into $HYPE through both staking and balance sheet purchases.

The BHYP ETF faces competition from 21Shares' THYP product, which launched on Nasdaq earlier in the week and attracted around $1.2 million in inflows on its first day. Combined, the two $HYPE ETFs have amassed over $5.6 million in total net inflows.

The significance of Bitwise's fee model lies in its alignment with Hyperliquid's community-centric approach. With Hyperliquid having facilitated $2.9 trillion in trading volume in 2025 – a staggering 400% year-over-year increase – and currently commanding around 60% of global on-chain derivatives open interest, $HYPE's market capitalization exceeds $11 billion, making it the tenth-largest crypto asset by market capitalization.

By pledging to direct a portion of its management fees towards $HYPE buybacks, Bitwise is ensuring that its incentives are directly tied to the success of the Hyperliquid community. As the fund's assets under management (AUM) and ETF inflows grow, so too will the demand for $HYPE, creating a scalable and sustainable demand mechanism that benefits both the fund and the broader Hyperliquid ecosystem.