Key Takeaways
- • Bitwise Asset Management filed a second amended S-1 with the SEC on April 10, advancing its proposed spot Hyperliquid (HYPE) ETF toward launch, with Bloomberg Intelligence's Eric Balchunas indicating imminent approval potential.
- • The fund will trade on NYSE Arca under ticker BHYP with a 0.67% annual management fee, backed by Anchorage Digital Bank as custodian and CF Benchmarks providing daily pricing at 4 p.m. ET.
- • Trading counterparties now include FalconX, Flowdesk, Nonco, and Wintermute (with Flowdesk and Wintermute newly added), while A1 has been removed from the approved list.
- • Bitwise plans to stake substantially all HYPE holdings except a 30% liquidity reserve, with staking rewards subject to a 15% fee split between Bitwise and designated staking agents—a differentiation from competing Grayscale and 21Shares proposals that lack explicit staking commitments.
- • Bitwise filed first among three competitors (21Shares and Grayscale also submitted applications), positioning it furthest in the SEC review process as of the April filing date.
Summary
Bitwise Asset Management has progressed substantially toward launching a spot Hyperliquid exchange-traded fund, filing a second amendment to its SEC registration statement on April 10. The updated S-1 incorporates regulatory feedback and operational details necessary for launch approval. According to Bloomberg Intelligence senior ETF analyst Eric Balchunas, the fund could launch soon following this filing.
The amended submission names four approved trading counterparties: FalconX, Flowdesk, Nonco, and Wintermute. Flowdesk and Wintermute represent new additions to the approved list, while A1—previously listed and identified as an Anchorage Digital affiliate—has been removed. Anchorage Digital Bank will continue serving as custodian of the trust's HYPE token assets. CF Benchmarks will provide the fund's daily reference rate, calculated at 4 p.m. ET on each trading day.
The ETF will trade on NYSE Arca under the ticker BHYP with an annual management fee of 0.67%. A distinctive feature sets Bitwise's proposal apart from competing applications: the trust plans to stake substantially all its HYPE holdings, maintaining only a 30% liquidity reserve for redemptions. Staking rewards will be subject to a 15% fee, split between Bitwise and designated staking operators, with Bitwise affiliate Attestant named as a potential staking operator. Neither Grayscale nor 21Shares has explicitly committed to staking strategies in their respective filings.
Bitwise filed its original S-1 registration in September, establishing it as the first issuer to seek SEC approval for a spot HYPE ETF. Competing applications followed: 21Shares submitted in October, and Grayscale filed in late March. As of the April amendment, Bitwise had progressed furthest through the SEC review process. The Hyperliquid token has gained significant market prominence, with reports placing it among the top-ten cryptocurrency assets by market capitalization, exceeding $11 billion.
The amended submission names four approved trading counterparties: FalconX, Flowdesk, Nonco, and Wintermute. Flowdesk and Wintermute represent new additions to the approved list, while A1—previously listed and identified as an Anchorage Digital affiliate—has been removed. Anchorage Digital Bank will continue serving as custodian of the trust's HYPE token assets. CF Benchmarks will provide the fund's daily reference rate, calculated at 4 p.m. ET on each trading day.
The ETF will trade on NYSE Arca under the ticker BHYP with an annual management fee of 0.67%. A distinctive feature sets Bitwise's proposal apart from competing applications: the trust plans to stake substantially all its HYPE holdings, maintaining only a 30% liquidity reserve for redemptions. Staking rewards will be subject to a 15% fee, split between Bitwise and designated staking operators, with Bitwise affiliate Attestant named as a potential staking operator. Neither Grayscale nor 21Shares has explicitly committed to staking strategies in their respective filings.
Bitwise filed its original S-1 registration in September, establishing it as the first issuer to seek SEC approval for a spot HYPE ETF. Competing applications followed: 21Shares submitted in October, and Grayscale filed in late March. As of the April amendment, Bitwise had progressed furthest through the SEC review process. The Hyperliquid token has gained significant market prominence, with reports placing it among the top-ten cryptocurrency assets by market capitalization, exceeding $11 billion.
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