Bitwise Suggests Hyperliquid’s HYPE May Be Mispriced
According to Bitwise Chief Investment Officer Matt Hougan, Hyperliquid’s HYPE token is still undervalued, despite being one of the strongest large-cap crypto performers of 2026.
Summary
- HYPE has surged 77% this year, with Bitwise suggesting that investors are still not recognizing Hyperliquid’s broader market appeal.
- Hougan noted that Hyperliquid’s $170 billion monthly volume indicates demand extends well beyond crypto perpetual futures markets.
- Bitwise plans to allocate 10% of BHYP management fees to directly purchase and hold HYPE tokens.
In a memo dated May 19, Hougan highlighted that HYPE has appreciated by 77% year-to-date, making it the top-performing large-cap crypto asset of 2026. However, he believes that investors have not fully accounted for Hyperliquid’s potential or its token model.
He characterized HYPE as one of the most mispriced assets in crypto, based on two factors: Hyperliquid’s market may extend beyond just crypto, and its token is more directly linked to platform activity compared to many older DeFi assets.
Hyperliquid expands beyond crypto trading
Initially launched as a perpetual futures exchange for crypto assets, Hyperliquid has expanded significantly. Hougan mentioned that nearly half of its trading volume now comes from non-crypto assets such as commodities, S&P 500 futures, pre-IPO stocks, and prediction markets.
He projected that non-crypto assets could make up 70% of Hyperliquid’s trading volume by the end of the year, noting that the platform has facilitated $170 billion in trading volume over the past month due to its expansion into a broader market.
In addition, Hougan described HYPE as a “Gen 2” crypto token because its framework associates platform activity with token value. He specified that 99% of the trading fees generated on Hyperliquid are allocated to buying back HYPE.
He stated, “More trading → more buybacks → more value accrual. No ambiguity.” Bitwise has also committed to using 10% of the management fee from its BHYP Hyperliquid ETF to buy and retain HYPE on its balance sheet.
ETF demand adds fresh market focus
Recent market updates indicate an increasing interest in funds linked to Hyperliquid. Bitwise’s BHYP debuted on the NYSE on May 15 with a sponsor fee of 0.34%, while 21Shares’ Hyperliquid ETF attracted over $5 million in inflows shortly after its U.S. launch.
Additional price analysis showed HYPE climbing approximately 24% within six days, nearing its all-time high, as demand for ETFs, growth in USDC, and interest in synthetic markets drove attention to Hyperliquid.
Hougan argued that the market continues to evaluate Hyperliquid merely as a rapidly growing crypto futures venue. He contended that it should be regarded as a comprehensive trading platform encompassing crypto, equities, commodities, foreign exchange, prediction markets, and structured products.