Bitwise plans to allocate 10% of the management fee from its HYPE ETF to acquire HYPE tokens for its balance sheet.

Summary

  • Bitwise has announced its intention to dedicate 10% of the management fee from its BHYP Hyperliquid ETF to buying and holding HYPE tokens on its balance sheet.
  • The BHYP ETF launched on NYSE on May 15 with a 0.34% sponsor fee, becoming the first US product to offer in-house staking via Bitwise Onchain Solutions.
  • Alongside 21Shares’ THYP product, the two Hyperliquid ETFs have accumulated over $5.6 million in net inflows since their recent introduction.

Bitwise Asset Management has declared its commitment to reserve 10% of the management fee earned from its Bitwise Hyperliquid ETF (NYSE: BHYP) for acquiring HYPE tokens for its balance sheet. This initiative aligns with Hyperliquid’s tokenomics, which allocates around 99% of protocol revenue to repurchasing HYPE tokens through its Assistance Fund.

“The structure of Hyperliquid’s token is designed so that heightened trading activity on the platform directly benefits token holders,” noted Matt Hougan, Chief Investment Officer of Bitwise. “This model has historically generated strong returns, and we consider it one of the most promising assets in the crypto landscape.”

Overview of HYPE ETF and Buyback Strategy

The BHYP ETF debuted on NYSE on May 15 with an initial sponsor fee of 0.34%, which is waived for the first month up to $500 million in assets. It is the only US-listed Hyperliquid product that stakes HYPE through its own framework instead of utilizing third-party services. Reports indicate that HYPE has surged to about $46 since the launch, recovering approximately 65% since early 2026.

The allocation of 10% from management fees provides an additional revenue stream for HYPE beyond staking. Bitwise stakes the fund’s assets with Bitwise Onchain Solutions, where rewards are sent back to the fund after applying a 15% fee. Enhanced acquisitions funded by management fees enable institutional investment to flow into HYPE through two routes.

Competing with BHYP is 21Shares’ THYP product, which launched earlier that week on Nasdaq and garnered around $1.2 million in inflows on its first day. Together, both HYPE ETFs have achieved over $5.6 million in cumulative net inflows.

Importance of the Fee Structure for HYPE

Hyperliquid witnessed a substantial trading volume of $2.9 trillion in 2025, reflecting over a 400% year-on-year increase, and currently manages about 60% of the global on-chain derivatives open interest. HYPE’s market cap has surpassed $11 billion, making it the tenth-largest crypto asset by market capitalization.

As per the April filing update from crypto.news, ETF analyst Eric Balchunas from Bloomberg positioned the announcement of the BHYP ticker and fee details as signals that the fund was approaching its launch.

The fee-to-buyback strategy closely aligns Bitwise’s interests with Hyperliquid’s community-centric philosophy. Every dollar generated from management fees translates into a portion of HYPE that remains on Bitwise’s balance sheet indefinitely, creating a demand mechanism that scales with fund assets under management (AUM) and ETF inflows.