Bitwise HYPE ETF Allocates 10% of Fees for Buybacks
Bitwise intends to allocate 10% of the management fee derived from its HYPE ETF towards acquiring HYPE tokens for its balance sheet.
Summary
- Bitwise has committed to directing 10% of the management fee from its BHYP Hyperliquid ETF for the purchase and retention of HYPE tokens in its balance sheet.
- The BHYP ETF launched on the NYSE on May 15, featuring a 0.34% sponsor fee, and is the first US offering to facilitate in-house staking through Bitwise Onchain Solutions.
- Together with 21Shares’ THYP ETF, both Hyperliquid ETFs have attracted over $5.6 million in net inflows since their introduction.
Bitwise Asset Management has revealed its plan to allocate 10% of the management fee accrued from its Bitwise Hyperliquid ETF (NYSE: BHYP) for the acquisition of HYPE tokens for its balance sheet. This move aligns with Hyperliquid’s tokenomics, directing approximately 99% of protocol revenue towards buying back HYPE through its Assistance Fund.
“Hyperliquid’s token is intentionally designed so that rising trading activity on the Hyperliquid platform directly benefits its token holders,” remarked Matt Hougan, Chief Investment Officer at Bitwise. “Historically, this has resulted in outstanding returns, making it one of the most promising assets in the cryptocurrency landscape.”
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 will be waived for the first month on the first $500 million in assets. It stands as the only US-listed Hyperliquid product that stakes HYPE through its own infrastructure instead of relying on third-party services. Reports indicate that HYPE has surged to approximately $46 post-launch, recovering about 65% from early 2026.
Allocating 10% from management fees offers an additional channel for capital to flow into HYPE beyond staking. Bitwise stakes the fund’s assets via Bitwise Onchain Solutions, with rewards reinvested into the fund following a 15% fee. Increased purchases from management fees enable institutional capital to enter HYPE through dual pathways.
In competition with BHYP is 21Shares’ THYP product, which debuted on Nasdaq earlier that week and secured around $1.2 million in inflows on its opening day. Collectively, both HYPE ETFs have demonstrated over $5.6 million in total net inflows.
Importance of the Fee Structure for HYPE
Hyperliquid achieved an impressive $2.9 trillion in trading volume in 2025, reflecting a year-over-year increase of over 400% and currently accounts for about 60% of the global on-chain derivatives open interest. HYPE’s market capitalization exceeds $11 billion, making it the tenth-largest crypto asset by market cap.
As outlined in a filing update from crypto.news in April, Bloomberg ETF analyst Eric Balchunas noted that the introduction of the BHYP ticker and fee structure indicated the fund was approaching its launch.
This fee-to-buyback commitment closely aligns Bitwise’s interests with the community-focused ethos of Hyperliquid. Each dollar earned from management fees yields a portion of HYPE that remains on Bitwise’s balance sheet for the long term, creating a demand mechanism that scales alongside the fund’s assets under management (AUM) and ETF inflows.