Bitwise Asset Management's Hyperliquid ETF (BHYP) has rapidly emerged as a dominant player in the cryptocurrency investment landscape, recording substantial inflows since its launch. The fund, which began trading on the NYSE on May 15, 2026, has quickly become the largest Hyperliquid ETF globally, attracting approximately $19 million in a single day and pushing its assets under management past $62 million. This surge in investor interest comes as Bitwise CEO Hunter Horsley emphasized the importance of transparent risk disclosures for the product.
"This material must be accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit https://t.co/dbCugAsu9J. The Bitwise Hyperliquid ETF (BHYP or the “Fund”) is not suitable for all investors. An investment in BHYP is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment," stated Hunter Horsley in a recent tweet, underscoring the inherent risks.
BHYP offers investors exposure to HYPE, the native token of the Hyperliquid network, a high-performance Layer 1 blockchain known for its on-chain trading and decentralized finance applications. The ETF is physically backed by HYPE tokens, with Bitwise utilizing an in-house staking division to generate potential rewards, which are reinvested into the fund. This unique model, where a portion of management fees is used to buy back HYPE tokens, has been highlighted by Bitwise CIO Matt Hougan as a key selling point for financial advisors.
The tweet also clarified BHYP's regulatory status, noting, "BHYP is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and therefore is not subject to the same protections as mutual funds or ETFs registered under the 1940 Act." This distinction means the fund operates under a different regulatory framework than traditional ETFs, which generally offer more investor protections. Investors are explicitly warned that "An investment in BHYP is not the same as a direct investment in Hyperliquid (HYPE)," indicating structural differences and potential additional risks.
Despite these significant disclaimers, BHYP's rapid asset accumulation suggests a strong appetite among investors for exposure to emerging crypto assets through regulated, exchange-traded products. Hyperliquid itself has seen considerable growth, with its HYPE token becoming a top-ten crypto asset by market capitalization. The ETF's success reflects a broader trend of institutional and retail investors seeking diversified access to the crypto market, even for assets with higher volatility and specific regulatory profiles.
