What to know:
- The Bitwise Hyperliquid ETF crossed the mark of holding over 1 million HYPE tokens, reaching the assets under management of over $62 million.
- About $55 million worth of HYPE tokens staked on Hyperliquid, which earns yield via protocol rewards.
- The Hyperliquid ETF ecosystem sees $117 million in net inflows as HYPE trades at $73.39 with a volume of $3.62 billion.
Bitwise’s Hyperliquid ETF (BHYP) has surpassed the milestone of holding more than 1 million HYPE tokens, pushing the fund’s total assets beyond $62 million. It has been less than two weeks since the ETF was listed on NYSE Arca, demonstrating the high level of interest from investors in Hyperliquid-focused ETFs.
Significant shares of the ETF holdings generate yield for its investors. According to a recent post, Bitwise validators have accumulated a total of 7.8 million HYPE tokens, now valued at approximately $580 million, reflecting rising institutional staking activity across the network.
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Hyperliquid ETF Staking Infrastructure Supports Growth
Launched on May 15, BHYP offers investors direct spot exposure to HYPE rather than relying on derivatives or futures contracts. The sponsor fee on BHYP amounts to 0.34%, to promote the growth of the ETF during its first few months of operation, Bitwise decided to waive that fee on the first $500 million worth of assets under management.
One of the ETF’s distinguishing features is its internally developed staking infrastructure. With Bitwise Onchain Solutions operating its own validator network, the ETF does not outsource staking to any third party, allowing the firm to fully control the process. It also helps with slashing risks related to the proof-of-stake model.
The firm also actively manages potential slashing risks associated with proof-of-stake networks. Any staking rewards earned by the Hyperliquid ETF are distributed to investors after applicable fees, creating an additional source of returns beyond potential token price appreciation. Meanwhile, Hyperliquid is trading at $73.39 with a 24-hour trading volume of $3.62 billion and a market cap of $18.60 billion.
Hyperliquid Ecosystem Attracts Growing ETF Competition
Inflow analysis shows that BHYP has been accumulating significant amounts of HYPE tokens since launch, including the multi-million dollar accumulations on several days. It happens amid the continuous expansion of Hyperliquid into the derivatives industry and the increasing number of institutional players interested in its offerings.
Designed as a proof-of-stake Layer 1 blockchain, Hyperliquid specializes in on-chain perpetual trading. One of the key differences between it and other similar projects lies in the fact that the project pays rewards via actual protocol revenues, rather than token inflation. In other words, all trading fees generated by the protocol go to staking.
ETF competition in the rapidly expanding Hyperliquid space is rising fast. Apart from BHYP itself, 21Shares has introduced another HYPE ETF product known as THYP, while Grayscale is developing the HYPG fund. Together, US Hyperliquid ETFs have seen inflows in excess of $117 million over just about 10 days of trading.
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