Bitwise is preparing to launch its Hyperliquid ETF under the ticker BHYP, following a key regulatory filing that outlines final details including a 0.67% management fee and built-in staking rewards.
Key Takeaways
- Bitwise filed an amended S-1 form for its Hyperliquid ETF, confirming key launch elements like ticker BHYP and a 0.67% annual fee.
- The ETF will directly hold Hyperliquid’s native token (HYPE) and stake a substantial portion to earn on-chain rewards.
- The fund is structured as a Delaware statutory trust and will list on NYSE Arca upon regulatory approval.
- Market analysts view the filing as the final procedural step, suggesting that the ETF could launch as early as late December or early January.
What Happened?
Bitwise Asset Management has moved closer to launching its Hyperliquid ETF, filing a major amendment with the US Securities and Exchange Commission on December 15. The update finalizes critical aspects of the fund, including its trading symbol (BHYP), its expense ratio, and a unique feature allowing it to stake the HYPE tokens it holds to generate additional yield.
Bitwise just filed amendment for its Hyperliquid ETF which added the 8a thing, the fee (67bps) and the ticker $BHYP. Usually that means launch imminent. Stay tuned. pic.twitter.com/uNXwlIrkga
— Eric Balchunas (@EricBalchunas) December 15, 2025
Bitwise’s ETF Push Gathers Speed
The updated Form S-1 includes language under Section 8(a) of the Securities Act, a signal to analysts that the fund is entering launch-ready territory. Bloomberg ETF analyst Eric Balchunas noted that the inclusion of this clause, along with the fund’s finalized fee and ticker, generally indicates that a launch is imminent.
The Hyperliquid ETF will directly hold HYPE tokens, instead of using derivatives or swaps. This structure aligns it with spot crypto ETFs and reflects growing investor interest in physically-backed digital asset products. The fund is passively managed and will not engage in leverage or market timing.
According to the filing, Bitwise will list the ETF on NYSE Arca under the ticker BHYP, offering investors exposure to the US dollar value of Hyperliquid, less operating costs.
A Built-In Staking Component
One of the ETF’s most unique features is its built-in staking mechanism. The fund plans to stake “a substantial portion” of its HYPE holdings through regulated partners like Anchorage Digital Bank. The rewards earned through staking, net of any associated fees or lockups, will stay within the trust and be reflected in the fund’s net asset value (NAV) over time.
Staking introduces a potential source of yield, making BHYP more than just a price-tracking vehicle. However, it also adds exposure to risks like validator penalties (slashing), protocol updates, and potential liquidity challenges.
Pricing, Custody, and Transparency
The ETF will use the CF Hype Dollar US Settlement Price as its official pricing benchmark. This rate is published daily at 4:00 p.m. ET and aggregates trade data from major centralized exchanges to reduce manipulation risks.
For real-time tracking, the ETF will also rely on the CF Hypecoin-Dollar Spot Rate Index, which updates every 15 seconds during market hours, helping investors monitor NAV fluctuations more accurately.
Anchorage Digital Bank will handle digital asset custody, using segregated wallets and strict controls. Cash flows and fund administration will be managed by BNY Mellon, which is responsible for NAV calculations, accounting, and transfer agent duties.
ETF Mechanics: Creation and Redemption
Like other ETFs, BHYP will create and redeem shares in batches of 10,000 units called “Baskets.” Authorized Participants can fund these baskets with either HYPE or cash, which the fund will then convert into HYPE. Similarly, redemptions can be made in kind or in cash, allowing for arbitrage opportunities that help keep the ETF’s trading price close to its NAV.
Wider Context: Growing Competition in Crypto ETFs
Bitwise’s Hyperliquid ETF is one of several HYPE-related products recently filed with the SEC. Competitor VanEck has also filed for a staking-based Hyperliquid ETF. While no Hyperliquid ETF has yet received SEC approval, analysts suggest that the inclusion of staking in filings could test regulators’ comfort with decentralized finance exposure in publicly traded investment vehicles.
Meanwhile, the UK government has announced plans to regulate cryptoassets beginning in October 2027, further underscoring the growing global push for clarity in crypto investment products.
CoinLaw’s Takeaway
I found this launch particularly interesting because it’s not just another spot ETF. In my experience, combining direct asset exposure with on-chain staking rewards is a rare move in the ETF space. It bridges traditional finance with DeFi in a way that could attract both institutional and retail investors. If successful, Bitwise’s BHYP could set a precedent for how other altcoin ETFs are structured in the future. That said, the inclusion of staking does increase operational complexity and potential risk. Still, it’s a bold and innovative step that could push the entire crypto ETF market forward.
