Bitwise Accelerates HYPE Accumulation as Hyperliquid Rally Extends
Bitwise deepened its exposure to Hyperliquid’s native token HYPE after purchasing another $10.1 million worth of the asset, reinforcing a broader institutional accumulation trend tied to ETF inflows, staking demand, and Hyperliquid’s expanding role in onchain financial markets.
Summary:
- Bitwise added another $10.1 million in HYPE following the launch of its BHYP ETF.
- Hyperliquid’s protocol has already completed more than $1.16 billion in automated HYPE buybacks.
- Public firms and ETF issuers are increasingly treating HYPE as a long-term treasury asset.
The move comes as HYPE trades near fresh highs above $63, with momentum driven by aggressive protocol buybacks, rising institutional treasury adoption, and growing investor appetite for crypto-native trading infrastructure.
Bitwise Expands Exposure Through BHYP ETF
The latest purchase follows the May 15 launch of the Bitwise Hyperliquid ETF (BHYP), the first U.S.-listed spot HYPE ETF featuring integrated onchain staking rewards.
Together with rival issuer 21Shares, institutional products tied to Hyperliquid accumulated roughly $68 million worth of HYPE over the past week alone as inflows accelerated.
The structure reflects growing institutional demand for yield-generating crypto assets beyond Bitcoin and Ethereum, particularly among funds targeting exposure to onchain financial infrastructure.
Bitwise has also introduced an additional accumulation mechanism directly tied to the ETF itself.
Bitwise Ties ETF Revenue to HYPE Buybacks
On May 18, Bitwise announced that 10% of BHYP management fees would be used to purchase HYPE tokens on the open market.
Those tokens are then staked internally through Bitwise Onchain Solutions, creating a feedback loop between ETF growth, token demand, and staking participation.
The structure effectively transforms ETF inflows into recurring spot market buying pressure, further tightening circulating supply.
Analysts noted the mechanism resembles an institutionalized version of crypto-native protocol buyback models increasingly seen across decentralized finance.
Hyperliquid’s Buyback Machine Drives Supply Shock
Institutional demand has coincided with Hyperliquid’s own aggressive token economics.
The protocol currently directs approximately 99% of trading fee revenue into automated market purchases through its Assistance Fund, which continuously buys HYPE directly from the market.
READ MORE: Worldcoin Weekly Surge Hits 27% as Traders Bet on Supply Shock and AI Narrative
Cumulative buybacks have now surpassed $1.16 billion, according to protocol data.
The model has created one of the strongest supply-side compression dynamics among major crypto assets this year, helping push HYPE above the $60 level and into price discovery territory.
Institutions Increasingly View Hyperliquid as Financial Infrastructure
Bitwise Chief Investment Officer Matt Hougan recently described HYPE as one of the most undervalued large-cap crypto assets, arguing the market still views Hyperliquid too narrowly as a crypto derivatives exchange.
Hyperliquid is not a crypto app. It's a super app.
It's not targeting the $3 trillion crypto economy. It's targeting the $600 trillion global asset market.
Investors are valuing it as one thing. It's the other. https://t.co/DTdYf7FpGb
— Matt Hougan (@Matt_Hougan) May 19, 2026
Instead, institutional investors increasingly see the protocol evolving into a broader onchain financial layer spanning perpetual futures, commodities, equities, and prediction markets.
That narrative strengthened further following the rollout of permissionless perpetual markets and validator-governed event contracts, both of which expanded Hyperliquid’s addressable market beyond traditional crypto trading activity.
Corporate Treasury Adoption Begins Emerging
Institutional accumulation is no longer limited to ETF issuers.
According to Stocktitan, publicly traded Lion Group Holding recently reaffirmed that it holds nearly 194,000 HYPE tokens as part of its long-term corporate treasury strategy, mirroring the Bitcoin accumulation models pioneered by firms like Strategy.
The company cited Hyperliquid’s protocol upgrades and expanding market infrastructure as key reasons behind its allocation.
The development signals that HYPE is increasingly being viewed not simply as a speculative token, but as exposure to the economics of a rapidly growing onchain trading ecosystem.
Technical Momentum Remains Strong Above $60
HYPE continued trading near all-time highs on Tuesday, holding around the $63-$64 zone after rebounding sharply from support near $59 earlier this week.
Momentum indicators remain elevated, with RSI approaching overbought territory while MACD positioning continues signaling bullish trend continuation.
Traders are now closely watching whether the token can sustain a breakout with new highs as ETF inflows and protocol buybacks continue reducing available market supply.
For now, institutional demand appears to be reinforcing one of the strongest momentum structures in the broader digital asset market.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
