Bitwise is using part of the fees from its new Hyperliquid ETF to stack HYPE tokens on its own balance sheet. The move links the fund’s success directly to the Hyperliquid ecosystem, in a way most crypto ETFs have not yet tried.
How Bitwise Uses BHYP Fees to Buy HYPE
Bitwise recently launched the Bitwise Hyperliquid ETF, trading under the ticker BHYP, and designed to track the Hyperliquid’s HYPE token price. The fund trades on a major US exchange and charges a management or sponsor fee to investors, similar to other spot crypto ETFs.
Now, Bitwise says it will allocate 10% of those BHYP management fees to buy HYPE and hold it on the company balance sheet. This ties a slice of Bitwise’s own revenue to the same token its ETF tracks, creating an extra source of demand whenever the fund gathers more assets.
Why This Structure Stands Out
Most spot crypto ETFs simply earn cash fees and retain them, without looping those earnings back into the underlying asset. Bitwise’s plan stands out because it turns part of BHYP’s fee stream into a recurring HYPE buyer, as long as investors continue to use the ETF.
The structure also fits with how BHYP is built in Europe, where a related Hyperliquid ETP is fully backed by HYPE held in cold storage and designed to capture staking rewards. Together, these products show Bitwise leaning into HYPE exposure across multiple fronts rather than treating it as a neutral index component.
For HYPE, a committed buyer that grows with ETF assets could add a steady, rule‑based demand source over time. The more BHYP’s assets and fees rise, the more HYPE Bitwise can buy under its 10% revenue rule.
For investors, the ETF still works like a typical spot crypto product, with management fees and secondary market trading. However, the fee‑to‑HYPE link means BHYP’s success does not just support Bitwise’s bottom line; it also feeds back into the same token the fund tracks, tightening the connection between the issuer, the ETF, and the underlying Hyperliquid network.
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