Bitwise Launches Hyperliquid (HYPE) Fund with Staking

Crypto asset manager Bitwise announced on May 15, 2026, the launch of a new fund offering exposure to the Hyperliquid protocol's native token, HYPE. The Bitwise Hyperliquid Fund (BHYP) provides investors with spot exposure to the asset while incorporating staking rewards. A portion of the fund's HYPE holdings will be staked directly by Bitwise's institutional-grade staking division, aiming to generate additional yield for the fund's investors.

What is the Bitwise Hyperliquid Fund (BHYP)?

The Bitwise Hyperliquid Fund (BHYP) is a professionally managed investment vehicle designed to simplify access to the HYPE token. It removes the complexities of direct custody and transaction execution on decentralized platforms. The fund is the latest addition to Bitwise's suite of products, which collectively manage over $5 billion in assets as of Q1 2026.

BHYP's core objective is to track the value of HYPE. By purchasing shares in the fund, investors gain exposure to the token's price movements without needing to set up a digital wallet or interact with a cryptocurrency exchange. This structure is tailored for accredited investors and institutions seeking regulated entry points into emerging digital assets.

The fund's shares are intended to reflect the value of the HYPE held by the fund, net of expenses and other liabilities. This offers a more traditional investment pathway, similar to how investors gain exposure to commodities through exchange-traded products.

How Does In-House Staking Differentiate BHYP?

A key feature of the BHYP fund is its integrated staking component. Bitwise will use its dedicated in-house staking division to stake a portion of the fund's HYPE assets. Staking involves locking up tokens to help secure a blockchain network, and in return, participants receive rewards, typically in the form of more tokens. This process can generate a form of yield for the fund.

By managing staking operations internally, Bitwise aims to enhance security and operational efficiency. This contrasts with other funds that might rely on third-party custodians or staking-as-a-service providers, which can introduce additional counterparty risk and fee layers. Bitwise's approach provides direct oversight of the entire staking lifecycle, from node operation to reward distribution.

This structure allows BHYP to pass through staking rewards to its investors, which are factored into the fund's net asset value (NAV). For HYPE, the current annualized staking reward rate is estimated at approximately 8.5%, though this figure fluctuates based on network participation and token dynamics.

What is Hyperliquid and its HYPE Token?

Hyperliquid is a decentralized perpetual futures exchange built on its own Layer 1 blockchain. The protocol is designed for high-speed, low-latency trading, aiming to compete with the performance of centralized exchanges. Since its mainnet launch in late 2024, Hyperliquid has attracted significant volume, with its total value locked (TVL) exceeding $800 million.

The HYPE token is the native utility and governance asset of the Hyperliquid ecosystem. Token holders can participate in protocol governance, influencing decisions on future development and parameter changes. The token is also integral to the platform's fee structure and validator staking, which secures the network.

What Are the Risks of a Single-Asset Staking Fund?

Investing in a single-asset fund like BHYP carries specific risks that differ from diversified investment products. The fund's performance is entirely dependent on the price of the HYPE token. High volatility in the HYPE market could lead to significant capital loss, which may not be offset by staking yields. The fund's concentration in a single digital asset exposes it to project-specific risks.

Staking itself introduces technical and operational risks. These include the potential for smart contract vulnerabilities, network downtime, or penalties known as "slashing," where a validator loses a portion of its staked tokens for malicious behavior or failure to perform duties. While Bitwise's institutional setup is designed to mitigate these risks, they cannot be eliminated entirely.

staking often involves lock-up periods, which can affect the fund's liquidity. If a large volume of redemption requests occurs, the fund may face delays in unstaking assets to meet its obligations, potentially impacting the share price. Investors should carefully consider these risks before allocating capital.

Q: Is the Bitwise Hyperliquid Fund an ETF?

A: No, BHYP is not a publicly-traded exchange-traded fund (ETF) registered under the Investment Company Act of 1940. It is structured as a private placement or statutory trust, available primarily to accredited investors who meet specific income or net worth requirements. This structure has fewer regulatory hurdles than a public ETF but also offers less liquidity, as shares are not traded on major stock exchanges like the NYSE or Nasdaq.

Q: What is the fee structure for the BHYP fund?

A: While the official fee schedule is detailed in the fund's private placement memorandum, similar specialized crypto funds from asset managers typically carry an expense ratio. For a single-asset staking fund like BHYP, investors can anticipate an annual management fee in the range of 1.5% to 2.5%. This fee covers the operational costs of managing the fund, including custody, security, and the execution of the staking strategy.

Bottom Line

The BHYP fund launch signals growing institutional demand for structured products that provide yield-generating exposure to specific, high-growth crypto protocols.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.