Bitwise HYPE ETF Allocates 10% of Fees for Buybacks
Bitwise will allocate 10% of the management fee from its HYPE ETF to procure HYPE for its balance sheet.
Summary
- Bitwise has announced its intention to invest 10% of the management fee from the BHYP Hyperliquid ETF for the acquisition and retention of HYPE tokens on its balance sheet.
- The BHYP ETF made its debut on NYSE on May 15 with a sponsor fee of 0.34%, becoming the first US offering to enable in-house staking via Bitwise Onchain Solutions.
- Together with 21Shares’ THYP product, both Hyperliquid ETFs have attracted more than $5.6 million in net inflows since their recent launch.
Bitwise Asset Management has revealed its dedication to channel 10% of the management fee accrued from its Bitwise Hyperliquid ETF (NYSE: BHYP) towards acquiring HYPE tokens for its balance sheet. The firm noted that this approach aligns with Hyperliquid’s tokenomics, which allocates roughly 99% of protocol revenue to repurchasing HYPE through its Assistance Fund.
“Hyperliquid’s token is intentionally designed so that increased trading activity on the Hyperliquid platform directly benefits its token holders,” stated Matt Hougan, Chief Investment Officer of Bitwise. “This has historically resulted in significant returns, and we believe it is one of the most promising assets in the cryptocurrency landscape.”
Structure of HYPE ETF and Buyback Signal
The BHYP ETF launched on NYSE on May 15 with a promotional 0.34% sponsor fee, which is waived for the first month on the initial $500 million in assets. It serves as the only US-listed Hyperliquid product that stakes HYPE through its own infrastructure, avoiding reliance on third-party solutions. According to crypto.news, HYPE has climbed to approximately $46 post-launch, recovering about 65% since early 2026.
The allocation of 10% from management fees creates an additional capital stream for HYPE beyond staking. Bitwise stakes the fund’s holdings via Bitwise Onchain Solutions, with rewards returned to the fund after a 15% fee. Enhanced acquisitions from management fees enable institutional capital to flow into HYPE through multiple channels.
Competing with BHYP is 21Shares’ THYP product, which launched earlier that week on Nasdaq and secured around $1.2 million in inflows on its first day. Combined, both HYPE ETFs have achieved over $5.6 million in total net inflows.
Significance of the Fee Model for HYPE
Hyperliquid recorded an astonishing $2.9 trillion in trading volume in 2025, reflecting a year-on-year growth of over 400% and currently holds about 60% of all on-chain derivatives open interest globally. HYPE’s market capitalization exceeds $11 billion, making it the tenth-largest crypto asset by market capitalization.
As outlined in crypto.news’s April filing update, Bloomberg ETF analyst Eric Balchunas identified the unveiling of the BHYP ticker and fee structure as signs that the fund was approaching its launch.
The fee-to-buyback initiative aligns Bitwise’s interests closely with the community-first ethos of Hyperliquid. Each dollar generated from management fees results in a portion of HYPE that remains on Bitwise’s balance sheet indefinitely, creating a demand mechanism that scales in accordance with fund assets under management (AUM) and ETF inflows.