Bitwise Nears Hyperliquid ETF Launch as Token Holds Gains Above $42
Bitwise Asset Management is entering the final stage of launching a US-listed exchange-traded fund tied to Hyperliquid, with its latest regulatory filing coinciding with sustained strength in the underlying token.
Summary:
- Bitwise filed a second amended S-1, signaling a potential near-term approval window.
- The ETF will trade under the ticker BHYP and include staking yield.
- HYPE is holding above $42, supported by momentum and short liquidations.
The firm submitted its second amended S-1 on April 10, a stage widely viewed as the final step before clearance from the U.S. Securities and Exchange Commission. The updated filing was shared by Bloomberg expert Erich Balchunas. Analysts typically interpret this phase as alignment between issuer and regulator on key structural elements. That alignment is now being tested in the market itself.
Price Action Reflects ETF Momentum
Hyperliquid has stabilized near $42 following a sharp move higher triggered by the ETF filing.
Recent trading shows a steady upward trend, with higher lows forming since early April and resistance levels gradually being absorbed. Short-term indicators reinforce the move: RSI is holding near the low-60s, suggesting bullish momentum without entering overbought territory.
At the same time, MACD has flattened after a prior expansion phase, indicating that momentum is cooling but not reversing. This combination – trend intact, momentum stabilizing – often reflects consolidation after a strong move rather than exhaustion.
The price structure suggests the market is digesting the ETF narrative rather than rejecting it.
Key Terms Locked In
The amended filing finalized several core features of the proposed ETF. The fund will trade under the ticker BHYP and carry a 0.67% management fee. It will also include a staking component, allowing the fund to generate yield by participating in network validation.
Bitwise has outlined a target net yield of roughly 1%, which will be reflected in the fund’s net asset value. This structure differentiates the product from traditional spot ETFs, which typically offer only price exposure.
The inclusion of staking points to a broader evolution in crypto investment products, where yield generation is becoming part of the value proposition.
Europe Serves as a Live Test
Bitwise has already launched a similar product in Europe. The Bitwise Hyperliquid Staking ETP began trading on Deutsche Börse Xetra on April 9 under the same BHYP ticker. The product provides institutional investors with exposure to HYPE while capturing staking rewards on a daily basis.
This rollout effectively acts as a proof of concept for the US ETF, offering insight into demand and operational performance.
Market Reaction Extends Beyond Price
The ETF progress has also driven broader activity across the ecosystem.
HYPE surged from around $35 to above $42 following the filing, triggering more than $12.7 million in liquidations, with short positions accounting for the majority. The move reflects a classic short squeeze dynamic, where positioning lags behind fundamental developments.
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At the same time, the network reached a deflationary milestone. On April 9, buybacks exceeded token emissions, reducing circulating supply by over 15,000 HYPE in a single day.
These factors – price momentum, supply contraction, and institutional narrative – are reinforcing each other.
Growth Supports the Narrative
Hyperliquid’s underlying metrics continue to strengthen. The platform’s share of the decentralized derivatives market has increased from 3.5% to around 7% over the past year. Large inflows have also been observed, including multi-million-dollar allocations from new wallets following the ETF update.
This suggests that the rally is not driven solely by retail speculation but includes participation from larger players positioning ahead of a potential ETF launch.
ETF Race Intensifies
Bitwise is leading, but competition is building. Grayscale and 21Shares are also preparing similar filings, though Bitwise remains ahead due to the advanced stage of its application.
The expansion into assets like Hyperliquid reflects a broader shift in the ETF market, where issuers are moving beyond core cryptocurrencies to capture demand for more specialized exposure.
Countdown to Approval
Second amended filings typically mark the final stage before an ETF becomes effective.
At this point, most structural and regulatory issues have been resolved, leaving a narrow window – often between two and four weeks – for a potential launch.
For investors, both the filing and the price action are sending the same signal: the market is positioning for approval, but not fully pricing it in yet.
If the ETF is approved, it could validate Hyperliquid’s transition from a niche derivatives platform to an institutional-grade asset.
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 Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
