Asset manager Bitwise has moved a step closer to launching its spot Hyperliquid exchange-traded fund, updating its application to include the ticker BHYP and a management fee of 0.67%.
The details were brought to light by Bloomberg Senior ETF Analyst Eric Balchunas in a social media post, who noted the fee was "interesting" in the current competitive landscape for crypto products.
The updated S-1 filing with the U.S. Securities and Exchange Commission is for an ETF that would offer direct, regulated exposure to Hyperliquid (HYPE), a decentralized perpetual futures exchange. While a launch date is not yet confirmed, the inclusion of a ticker and management fee are typically among the final steps before a product can go live.
The proposed 0.67% fee is higher than the near-zero fees seen on many spot Bitcoin ETFs, but it reflects the different risk and liquidity profile of an altcoin-based product. The launch of BHYP would represent a significant step in diversifying crypto investment products, potentially bringing new capital to the Hyperliquid protocol and increasing its on-chain liquidity.
The filing by Bitwise, a major player in the crypto ETF space, underscores a broader trend of asset managers looking to expand their offerings beyond Bitcoin and Ethereum. Hyperliquid is a decentralized exchange built on its own Layer 1 blockchain, focusing on perpetual futures. Its native token, HYPE, is used for governance and staking on the platform.
According to data from DefiLlama, the Hyperliquid protocol currently has a Total Value Locked (TVL) of approximately $400 million. The introduction of a spot ETF product in the U.S. market could significantly boost this figure by providing a more accessible investment vehicle for both institutional and retail investors who may not want to self-custody the HYPE token.
This move follows the successful launch of spot Bitcoin ETFs earlier this year, which have already gathered tens of billions in assets. While an ETF for a smaller-cap, DeFi-focused asset like Hyperliquid is expected to be smaller in scale, its approval would set an important precedent for other altcoin-based funds, potentially opening the floodgates for a new wave of regulated crypto products.
This article is for informational purposes only and does not constitute investment advice.
