Bitwise Stakes $114M in HYPE on Hyperliquid

Bitwise deposited 1.775 million HYPE, roughly $114 million at current prices, into the Hyperliquid protocol and staked the tokens onchain. Blockchain records show the transfer moved into the protocol and was staked under Bitwise custody.

The deposit expands a position the firm has been building since its Bitwise Hyperliquid ETF (BHYP) began trading on NYSE Arca on May 15. BHYP’s management fee policy directs 10% of fees to buying and staking HYPE on Bitwise’s balance sheet; as fund assets increase, the dollar amount allocated under that policy rises.

Staking rewards on Hyperliquid are funded by the exchange’s trading fees rather than by new token issuance. Returns on staked HYPE depend on the exchange’s trading volume and fee revenue, and the value of Bitwise’s holding will change with market prices for HYPE.

Bitwise converted ETF inflows into staked HYPE over several weeks, with earlier purchases including a buy of about 77,097 HYPE worth roughly $5.2 million. The 1.775 million HYPE deposit is among the largest single onchain additions to the firm’s HYPE holdings to date.

Other asset managers have launched or are planning spot HYPE ETFs. Early inflows into these products have reduced portions of circulating HYPE supply as regulated funds acquire and stake tokens, increasing the volume of onchain flows tied to ETF activity.

Bitwise runs staking and custody for the ETF through its Bitwise Onchain Solutions unit. BHYP is one of the first U.S.-listed spot HYPE ETFs to combine an ETF wrapper with in-house onchain staking, routing a share of the fund’s fees into token purchases and protocol staking.