Bitwise HYPE ETF Allocates 10% of Fees for Buybacks
Bitwise has committed to dedicating 10% of the management fee from its HYPE ETF to purchase HYPE for its balance sheet.
Overview
- Bitwise has revealed plans to allocate 10% of the management fee from its BHYP Hyperliquid ETF for acquiring and holding HYPE tokens on its balance sheet.
- The BHYP ETF was launched on the NYSE on May 15 with a sponsor fee of 0.34%, making it the first U.S. product to offer in-house staking through Bitwise Onchain Solutions.
- Alongside 21Shares’ THYP product, the two Hyperliquid ETFs have collectively secured over $5.6 million in net inflows since their launch.
Bitwise Asset Management has announced its intention to direct 10% of the management fee earned from its Bitwise Hyperliquid ETF (NYSE: BHYP) towards securing HYPE tokens for its balance sheet. This approach aligns with the tokenomics of Hyperliquid, which allocates roughly 99% of protocol revenue to repurchasing HYPE via its Assistance Fund.
“Hyperliquid’s token is intentionally designed so that increased trading on the Hyperliquid platform directly benefits its token holders,” said Matt Hougan, Chief Investment Officer of Bitwise. “Historically, this has resulted in notable returns, and we consider it to be one of the most promising assets in the crypto market.”
Structure of HYPE ETF and Buyback Initiative
The BHYP ETF debuted on the NYSE on May 15 with an initial 0.34% sponsor fee, which is waived for the first month on the initial $500 million in assets. It is the only U.S.-listed Hyperliquid product that stakes HYPE through its own infrastructure, without relying on third-party services. Reports from crypto.news indicate that HYPE has risen to nearly $46 post-launch, marking a recovery of about 65% since early 2026.
The 10% allocation from management fees provides an additional funding channel for HYPE beyond standard staking. Bitwise stakes the fund’s holdings using Bitwise Onchain Solutions, with rewards funneled back to the fund after a 15% fee. This strategy allows institutional capital to enter HYPE from two distinct pathways.
Competing with BHYP is 21Shares’ THYP product, which launched earlier that week on Nasdaq and saw approximately $1.2 million in inflows on its first day. Together, both HYPE ETFs have exceeded $5.6 million in total net inflows.
Importance of the Fee Structure for HYPE
Hyperliquid recorded an impressive $2.9 trillion in trading volume for 2025, marking a year-on-year increase of over 400%, and currently holds about 60% of all on-chain derivatives open interest globally. HYPE’s market cap now surpasses $11 billion, making it the tenth-largest crypto asset by market capitalization.
In its April filing update, crypto.news noted that Bloomberg ETF analyst Eric Balchunas highlighted the introduction of the BHYP ticker and fee structure as signs that the fund was on the verge of launching.
The fee-to-buyback commitment aligns the interests of Bitwise closely with Hyperliquid’s community-first approach. Every dollar generated from management fees contributes to a portion of HYPE that remains on Bitwise’s balance sheet indefinitely, creating a demand mechanism that scales with the fund’s assets under management (AUM) and ETF inflows.
