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Bitwise to allocate 10% of BHYP ETF fees to HYPE treasury

FXStreetMay 19, 2026 12:21 AM
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  • Bitwise will allocate 10% of BHYP ETF management fees to purchasing and holding HYPE tokens on its balance sheet.
  • The move aligns with Hyperliquid's model of using protocol revenue for token buybacks, with a minimum 12-month holding period.
  • HYPE is up 4% following the announcement.

Bitwise stated that it will allocate 10% of management fees from its newly launched Bitwise Hyperliquid ETF (BHYP) toward purchasing and holding the HYPE token on its balance sheet.

"We're pleased to announce that Bitwise will be devoting 10% of the Bitwise Hyperliquid ETF ($BHYP) management fee to holding HYPE on the Bitwise balance sheet," Bitwise wrote in an X post on Monday.

Bitwise adopts treasury-style approach to enhance HYPE exposure

The move reflects the firm's aim to align with Hyperliquid's model, where the network directs 99% of its revenue toward buying and burning HYPE. Bitwise said the acquired tokens will be subject to a minimum 12-month holding period.

BHYP, which launched on Friday, offers US investors spot exposure to HYPE alongside staking rewards. The ETF trades on the NYSE and aims to track the token's performance through direct holdings, managed using Bitwise's in-house on-chain infrastructure.

The fund carries a 0.34% sponsor fee, which is waived for the first month on the initial $500 million in assets. Initial market response has been strong. BHYP recorded approximately $4.3 million in trading volume on its debut, the highest among altcoin ETF launches in 2026.

Hyperliquid remains a prominent player in decentralized finance (DeFi), particularly in perpetual futures trading. It currently boasts over $5 billion in total value locked (TVL).

Bitwise framed the fee allocation as part of a broader effort to align its products with the economics of the underlying Hyperliquid blockchain ecosystem. By holding HYPE directly, the firm extends its exposure beyond price tracking to include participation in the protocol's growth dynamics.

"The Hyperliquid community has known from Day One that, if Hyperliquid becomes one of the most powerful and disruptive forces in finance, those who hold HYPE should play a big part in that. We're holding HYPE," the firm added.

The launch comes amid increasing institutional interest in tokenized financial infrastructure and high-throughput DeFi platforms.

HYPE is trading at $47, up nearly 4% on the day and 13% over the past week amid a larger market decline.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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