Bitwise Asset Management launched BHYP, a US-listed investment fund offering direct spot exposure to Hyperliquid’s HYPE token with integrated staking rewards, on the New York Stock Exchange on May 15. The fund arrives as Hyperliquid commands 60% of global onchain derivatives open interest and marks the second institutional crypto product tied to the platform launched this week.
Hyperliquid’s Rapid Ascent in Derivatives
Hyperliquid, a decentralized layer 1 blockchain launched in 2023, processed $2.9 trillion in trading volume during 2025. The platform offers perpetual futures, spot trading, and lending across a single settlement layer. As of May 5, Hyperliquid accounted for 60% of all onchain derivatives open interest, establishing itself as the dominant venue for decentralized derivatives trading. This concentration reflects institutional and retail migration away from fragmented alternatives toward a unified liquidity pool.
Fund Structure and Competitive Pressure
BHYP carries a 0.34% sponsor fee with a waiver period in its first month or until assets reach $500 million, whichever occurs first. Bitwise will stake a significant portion of HYPE holdings through its in-house staking division, generating yield for fund shareholders. The launch intensifies competition: 21Shares launched THYP earlier this week, recording $1.2 million in net inflows and $1.8 million in trading volume on its first day. Grayscale Investments remains pending approval for its own Hyperliquid fund. HYPE trades at $44 with a $11.22 billion market capitalization, ranking 10th by market value.
Institutional Capital Converging on HYPE
Venture capital and infrastructure platforms are accumulating exposure. Andreessen Horowitz accumulated $67 million worth of HYPE earlier this week, with $51 million of that amount staked for yield. Coinbase designated itself as the official USDC treasury deployer on Hyperliquid, where stablecoin supply reached $5 billion. These moves signal institutional confidence in Hyperliquid’s infrastructure durability and market position. Bitwise manages $11 billion in client assets, positioning BHYP within an established custody and compliance framework.
Institutional Adoption at an Inflection Point
The convergence of spot ETFs, venture accumulation, and stablecoin infrastructure suggests Hyperliquid is transitioning from a specialist trading venue to institutional infrastructure. BHYP’s launch and fee waiver structure target early institutional adopters. The fund’s staking component addresses a core demand: yield generation on long-term HYPE holdings. Next variable: whether BHYP or THYP achieves the $500 million threshold required to activate full fees, signaling whether institutional demand justifies multiple competing products.
