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Bitwise Launches Spot HYPE ETF on NYSE Amid Rising Competition

Bitwise Launches Spot HYPE ETF on NYSE – Competition Intensifies After 21Shares Debut

Key Takeaways

• Bitwise launched its spot HYPE ETF, trading under the ticker BHYP, on the New York Stock Exchange on May 15.
• The product offers 100 percent exposure to HYPE and includes an integrated staking feature.
• 21Shares introduced the first U.S. spot HYPE ETF on May 13 and recorded $2.5 million in net inflows within two days.
• Bitwise charges a 0.34 percent fee, slightly higher than the 0.30 percent fee set by 21Shares.
• Coinbase agreed to return 90 percent of USDC interest income generated on Hyperliquid to fund HYPE value accrual programs.

Bitwise Debuts BHYP on NYSE With Full HYPE Exposure

Bitwise began trading its spot HYPE exchange traded fund on the New York Stock Exchange on May 15. The product, listed under the ticker BHYP, provides investors with direct exposure to the HYPE token and incorporates a built in staking feature.

According to Bitwise, the ETF grants 100 percent exposure to the altcoin. The launch follows an updated filing by the asset manager and places Bitwise among the first providers offering regulated spot exposure to HYPE in the United States.

The company set the management fee at 0.34 percent. This positions BHYP slightly above the fee level of its main competitor, 21Shares, which charges 0.30 percent for its own spot HYPE ETF.

21Shares Records Early Inflows After First U.S. Spot HYPE ETF

The competitive landscape for HYPE based exchange traded products changed earlier in the week. On May 13, 21Shares launched what it described as the first U.S. spot HYPE ETF.

Within two days of trading, the product attracted $2.5 million in net inflows, according to data cited from SoSo Value. These early inflows indicate initial investor demand for regulated spot exposure to the token.

With Bitwise now entering the market and a similar product from Grayscale expected to launch soon, the segment is expanding rapidly. The timeline for a potential VanEck offering remains unclear.

For investors evaluating crypto based exchange traded products, the fee structure, staking design, and liquidity development across these issuers are central elements to compare.

Institutional Narrative Around Hyperliquid Gains Visibility

In explaining its decision to launch the ETF, Bitwise highlighted Hyperliquid as a decentralized onchain trading platform with growing institutional relevance. The firm stated that during a period of geopolitical conflict in the Middle East, when traditional markets were closed on a Sunday, institutions turned to Hyperliquid instead of waiting for conventional exchanges to reopen.

This framing positions Hyperliquid as a platform that operates continuously and may attract activity during periods when traditional markets are unavailable. For market participants, this narrative connects the ETF launch to broader trading infrastructure trends in decentralized finance.

Coinbase Becomes Official USDC Treasury Deployer for Hyperliquid

In parallel with the ETF developments, Coinbase announced that it will serve as Hyperliquid’s official treasury deployer of USDC. The exchange also acquired Native Markets, the company behind the stablecoin USDH.

USDH had initially been intended to replace USDC across the decentralized exchange. The original motivation for introducing USDH was to reduce the outflow linked to approximately $5 billion in USDC circulating on Hyperliquid. That USDC supply was generating about $200 million in interest income, shared by Coinbase and Circle, without contributing directly to Hyperliquid.

Under the new arrangement, Coinbase will sunset USDH and maintain USDC as the primary liquidity asset on Hyperliquid. As part of the agreement, Coinbase will reportedly return 90 percent of the interest income generated to fund HYPE value accrual programs, including buybacks.

Based on the figures cited, this could translate into roughly $160 million to $180 million annually flowing back into the Hyperliquid ecosystem. Austin Barack, founder of Relayer Capital, quantified the potential impact as approximately $440,000 per day in additional HYPE buy pressure, on top of around $1.7 million in daily revenue from trading fees.

HYPE Price Reaction and Market Activity

Following the Coinbase announcement and related updates, HYPE’s price rose 23 percent and reached $47, marking a new yearly high according to the cited data. The report also noted that large holders increased long positions in the token.

The combination of ETF launches and changes to revenue distribution within the Hyperliquid ecosystem coincided with heightened market activity around HYPE. For traders and platform users, these developments link capital market products with onchain revenue mechanisms.

Our Assessment

The launch of Bitwise’s BHYP ETF marks the second U.S. spot HYPE exchange traded product within the same week, following 21Shares’ debut and early inflows of $2.5 million. Fee competition and product structure, including staking integration, now differentiate issuers in a growing segment.

At the same time, Coinbase’s agreement to return 90 percent of USDC related interest income to Hyperliquid introduces a defined revenue flow tied to HYPE value accrual programs. Together, the ETF expansion and the revised treasury arrangement represent structural developments that directly affect HYPE exposure, liquidity, and capital allocation within the Hyperliquid ecosystem.