Bitwise HYPE ETF Commits 10% of Fees to Buybacks
Bitwise will allocate 10% of the management fee from its HYPE ETF to acquire HYPE for its balance sheet.
Summary
- Bitwise has declared that it will dedicate 10% of its BHYP Hyperliquid ETF management fee for purchasing and holding HYPE tokens on its balance sheet.
- The BHYP ETF debuted on NYSE on May 15 with a 0.34% sponsor fee, becoming the first US product to provide in-house staking via Bitwise Onchain Solutions.
- Together with 21Shares’ THYP product, the two Hyperliquid ETFs have garnered over $5.6 million in net inflows since their recent launch.
Bitwise Asset Management has announced its commitment to allocate 10% of the management fee generated from its Bitwise Hyperliquid ETF (NYSE: BHYP) towards acquiring HYPE tokens for its balance sheet. The company indicated that this strategy is in line with Hyperliquid’s own tokenomics, which directs about 99% of protocol revenue to repurchasing HYPE through its Assistance Fund.
“Hyperliquid’s token is purposely structured so that increased trading activity on the Hyperliquid platform directly benefits its token holders,” stated Matt Hougan, Chief Investment Officer of Bitwise. “This has historically led to impressive returns, and we believe it’s among the most promising assets in the crypto market.”
Structure of HYPE ETF and Buyback Signal
The BHYP ETF launched on NYSE on May 15 with an introductory 0.34% sponsor fee, waived for the first month on the initial $500 million in assets. It stands as the sole US-listed Hyperliquid product that stakes HYPE through its own infrastructure rather than relying on third-party solutions. According to crypto.news, HYPE has risen to approximately $46 following the launch, recovering about 65% since early 2026.
The commitment of 10% from management fees introduces an additional capital channel into HYPE beyond staking. Bitwise stakes the fund’s holdings via Bitwise Onchain Solutions, with rewards returning to the fund after a 15% fee. Enhanced purchases from management fees allow institutional capital to flow into HYPE through dual avenues.
In competition with BHYP is 21Shares’ THYP product, which launched earlier that week on Nasdaq and attracted about $1.2 million in inflows on its opening day. Collectively, both HYPE ETFs have achieved over $5.6 million in total net inflows.
Significance of the Fee Model for HYPE
Hyperliquid recorded a remarkable $2.9 trillion in trading volume in 2025, marking an increase of over 400% year on year and currently holds about 60% of all on-chain derivatives open interest worldwide. HYPE’s market capitalization exceeds $11 billion, ranking it as the tenth-largest crypto asset by market cap.
As detailed in crypto.news’s April filing update, Bloomberg ETF analyst Eric Balchunas identified the introduction of the BHYP ticker and fee information as indicators that the fund was nearing its launch.
The fee-to-buyback commitment aligns Bitwise’s interests closely with the community-first approach of Hyperliquid. Each dollar generated from management fees yields a portion of HYPE that remains on Bitwise’s balance sheet indefinitely, fostering a demand mechanism that scales in line with fund assets under management (AUM) and ETF inflows.