Bitwise bets Hyperliquid could power future finance as HYPE ETFs gain traction

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Bitwise bets Hyperliquid could power future finance as HYPE ETFs gain traction Bitwise says investor demand for Hyperliquid exposure is surging as new HYPE ETFs launch. Latest developments: Bitwise is leaning into Hyperliquid as one of crypto’s breakout platforms this cycle. - Bitwise Head of Research Ryan Rasmussen said the firm is seeing strong investor interest in its HYPE ETF products following the recent launch of BHYP. - Rasmussen said Bitwise differentiates itself by staking HYPE in-house to maximize yield for ETF investors. - The firm also allocates 10% of management fees toward buying HYPE tokens for its own balance sheet “to align with the Hyperliquid community,” Rasmussen said. - Bitwise publicly shares wallet addresses tied to its HYPE ETF reserves so investors can verify holdings on-chain. What this means: Hyperliquid is increasingly being framed as infrastructure. - Rasmussen argued Hyperliquid could become “one of the systems that most of traditional finance runs on in the future.” - He pointed to growth in perpetual futures, prediction markets and spot trading as evidence the ecosystem is expanding beyond its initial niche. - Rasmussen also cited tokenized equities, stablecoins and 24/7 trading as trends that could benefit Hyperliquid over the long term. - He referenced the recent Coinbase-Hyperliquid partnership tied to USDC liquidity as another sign of institutional momentum. The bull case: Bitwise believes Hyperliquid benefits from crypto’s changing regulatory climate. - Rasmussen said projects like Hyperliquid can now launch with stronger token incentives because the industry faces less fear of regulatory crackdowns than in prior cycles. - He highlighted Hyperliquid’s tokenomics, noting that “99% of fees generated on this platform are used to buy and burn HYPE tokens.” - Rasmussen compared the mechanism to traditional stock buybacks, arguing it creates an easier narrative for investors to understand. - Bitwise said it sees long-term upside tied to adoption of perpetuals, tokenization and blockchain-based financial infrastructure. The risks: Regulatory scrutiny and macro uncertainty remain major concerns. - Rasmussen acknowledged that U.S. oversight of perpetual futures markets could create pressure for Hyperliquid and similar platforms. - He also cited inflation concerns, Federal Reserve policy and geopolitical tensions as broader risks affecting crypto markets. - Traditional exchanges are reportedly pushing regulators to examine Hyperliquid more closely as decentralized competitors gain traction. - Rasmussen characterized that resistance as typical of incumbents facing disruptive technologies. Broader view: Financial advisors are moving beyond basic crypto skepticism. - Rasmussen said wealth managers are increasingly asking about portfolio allocation, tokenization and stablecoins instead of questioning whether crypto will “go to zero.” - Rasmussen said institutional adoption remains early despite growing interest from firms managing trillions of dollars. - He described the quality of advisor conversations today as “so much better” than even two years ago. More For You

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