Bitwise Proposes Hyperliquid ETF with Staking Component Amid HYPE Frenzy

Bitwise, a leading crypto asset manager, has made significant strides in its efforts to launch an exchange-traded fund (ETF) tied to Hyperliquid's HYPE token. The company has filed an updated S-1 registration statement with the U.S. Securities and Exchange Commission for the proposed ETF, which would trade under the ticker BHYP on NYSE Arca.

The ETF aims to track the price of HYPE, providing investors with exposure to the token without requiring them to leverage crypto exchanges or wallets. A key feature of the fund is its staking component, which would see a portion of holdings set aside to earn additional tokens. Notably, about 85% of staking rewards would be retained after fees.

Hyperliquid's HYPE token has experienced remarkable growth over the past year, surging around 200%. The increased interest in HYPE-linked ETFs is not isolated to Bitwise, as other asset managers including Grayscale, 21Shares, and VanEck are also exploring similar products. With the proposed ETF, investors will have an additional avenue for accessing the rapidly growing market.