Bitwise double down on the crypto HYPE bet with a massive investment

Bitwise brutally strengthens its crypto bet on Hyperliquid. The asset manager transferred 1.775 million HYPE tokens to the protocol before staking them. The operation, estimated at around 114 million dollars, accompanies the rise of its Hyperliquid spot ETF launched in May.

Crypto: Bitwise stakes 114 million on HYPE

Bitwise deposited 1.775 million HYPE on Hyperliquid, then committed all the tokens to staking. This position confirms the interest already shown by the manager for an asset he recently judged undervalued on the market.

At the price taken during the transaction, the tokens represented roughly 114 million dollars. This is therefore no longer a simple institutional test. Bitwise is establishing massive exposure on one of the main decentralized crypto derivatives platforms.

Staking also reduces the amount of HYPE immediately available on the market. When large holders lock their tokens, the liquid supply can contract. This mechanism however does not guarantee an automatic price increase. The economic model of Hyperliquid plays a central role in this operation. Staking rewards are not only based on the issuance of new tokens. They are notably supported by the activity and revenue generated by the protocol.

Bitwise is thus exposed to two crypto variables. The first remains the price of HYPE. The second depends on Hyperliquid’s level of use, notably the volume handled on its decentralized markets. This structure makes the bet more strategic than a classic purchase. If the activity grows, the protocol’s revenues can reinforce staking interest. Conversely, a drop in volumes would reduce the position’s economic attractiveness.

Hyperliquid quickly established itself in derivatives trading. The platform now competes with several major centralized venues on certain indicators, while retaining a largely on-chain architecture.

The BHYP ETF fuels crypto accumulation

The operation follows the launch of the Bitwise Hyperliquid ETF, listed under the symbol BHYP. This product gives investors exposure to HYPE without forcing them to directly manage a crypto portfolio or technical staking constraints.

The fund also seeks to capture rewards thanks to the tokens held. This design distinguishes BHYP from an ETF that would merely passively track the price of an asset. Bitwise wants to combine market exposure and on-chain yield.

The manager also dedicates part of its revenue to buying and staking HYPE. Fund growth can therefore feed new demand for the token. The more assets managed increase, the larger this mechanism can grow.

This dynamic explains why the Hyperliquid ETF now occupies an important place in Bitwise’s crypto strategy. The manager no longer only bets on Bitcoin or Ethereum. It also seeks to capture growth from younger infrastructures.

Hyperliquid attracts institutional finance

Bitwise is not alone in this field. Other managers have also sought to launch products linked to HYPE. This competition shows Hyperliquid has exceeded its status as a platform reserved for specialized traders.

The arrival of regulated funds can create a new source of demand. A few tens of millions of dollars represent little at the scale of traditional finance, but a lot for a token whose liquid supply remains limited. This concentration carries risks though. If ETFs accumulate a large share of available HYPE, their purchases can support the price. But their sales could also amplify a correction during massive exits.

Staking adds another level of dependency. Bitwise must monitor the protocol’s operation, validators, technical risks, and the network’s rule evolution. Institutional exposure does not remove crypto’s inherent vulnerabilities.

The 114 million dollar investment thus remains a strong signal, but not a guarantee. It confirms that Hyperliquid is entering a new phase, driven by ETFs, staking, and institutional capital. The battle for exposure to HYPE is probably just beginning, while the token aims higher in the crypto hierarchy.