Bitwise HYPE ETF adds $5M despite token's 14% slide

Bitwise ETF clients added over $5 million of HYPE last week, per Arkham data, even as the token fell 14 percent in 30 days.

"Hyperliquid has emerged as one of the most compelling investment opportunities in crypto today," Matt Hougan, chief investment officer at Bitwise, said at the fund's May launch.

HYPE trades near $54.75, down about 3 percent on the day and roughly 29 percent below its June 16 record of $76.87. HYPE ETFs returned to net inflows in the week ending Aug. 7, adding $2.84 million after three straight weeks of redemptions totaling $30.6 million, according to SoSoValue data. Cumulative net inflows stand at $280.8 million.

The accumulation matters because Hyperliquid routes 97 percent of protocol fees into HYPE buybacks, per Coinbase Institutional, creating a direct link between trading volume and token supply. With Hyperliquid handling $2.9 trillion in trading volume in 2025 and holding roughly 60 percent of global on-chain derivative open interest, continued ETF inflows could support price stability even as spot markets digest profit-taking.

The Bitwise Hyperliquid ETF (BHYP), which launched on the New York Stock Exchange on May 15, carries a 0.34 percent sponsor fee and uses Bitwise Onchain Solutions for in-house staking. Arkham data shows all August transactions from Bitwise-linked wallets were purchases, with no sales since the end of July.

The buying pattern diverges from the broader altcoin ETF picture. Combined weekly inflows across major crypto products approached $1.1 billion in the week ending Aug. 7, led by Bitcoin ETFs at $853.5 million and Ethereum funds at $244.9 million. Solana ETFs drew just $145,000, down from $7.2 million two weeks earlier, while XRP funds added $1 million after a $14.9 million intake the prior week.

JPMorgan strategist Nikolaos Panigirtzoglou tied the earlier HYPE outflow streak to competition, noting that weekly price action mirrored the redemptions. HYPE fell from the low $60s in late July toward $55 by early August.

Bitwise also operates a European HYPE product. The Bitwise Hyperliquid Staking ETP (BHYP) listed on Deutsche Börse Xetra on April 9 with a 0.85 percent expense ratio, tracking the Kaiko HYPE Reference Rate index.

Hyperliquid is a layer-1 blockchain built for perpetual futures and spot trading. The platform handled $2.9 trillion in trading volume in 2025, up more than 400 percent year over year, and holds roughly 60 percent of global on-chain derivative open interest, according to Bitwise's launch figures. HYPE ranks among the top 10 cryptocurrencies by market capitalization at about $13.9 billion, per CoinMarketCap.

The token's fee-to-buyback mechanism is the structural reason ETF flows carry weight. Hyperliquid's Assistance Fund converts 97 percent of protocol fees into HYPE buybacks, treating repurchased tokens as removed supply, according to Coinbase Institutional research. The firm pegged annualized fees near $1 billion.

Whether Bitwise keeps buying through August will show up in Arkham's data before it appears in official fund disclosures. The divergence between ETF inflows and spot price weakness could persist if profit-taking from earlier gains continues to outweigh new accumulation.

This article is for informational purposes only and does not constitute investment advice.