Key Takeaways
- • Bitwise Asset Management rebalanced its flagship Bitwise 10 Crypto Index ETF (BITW) on July 9, 2026, adding Hyperliquid (HYPE) and Stellar (XLM) while removing Polkadot (DOT) and Avalanche (AVAX) based on market capitalization and liquidity criteria.
- • Hyperliquid achieved a 165% year-to-date gain and now holds a 0.93% weighting in BITW following its selection; the decentralized perpetual trading platform processed $1.34 trillion in trading volume during the first half of 2026.
- • Polkadot and Avalanche no longer met the fund's market capitalization and weighting requirements, marking a significant shift in institutional crypto portfolio positioning away from established Layer 1 platforms.
- • BITW remains one of the world's largest crypto index funds, with Bitcoin and Ethereum continuing to dominate the portfolio alongside the newly added positions.
Summary
Bitwise Asset Management executed a monthly rebalance of its Bitwise 10 Crypto Index ETF (BITW) on July 9, 2026, introducing structural changes that reflect evolving institutional allocations within the cryptocurrency market. The rebalance added Hyperliquid (HYPE) and Stellar (XLM) to the index while removing Polkadot (DOT) and Avalanche (AVAX), based on the fund's established screening criteria centered on market capitalization, liquidity, and other quantitative metrics.
Hyperliquid emerged as the primary beneficiary of this rebalance, driven by exceptional performance during 2026. The decentralized perpetual trading platform recorded a 165% year-to-date gain and processed $1.34 trillion in trading volume during the first half of 2026 alone, demonstrating robust institutional adoption and market demand. Following its inclusion, HYPE now represents a 0.93% allocation within BITW's portfolio construction.
The removal of Polkadot and Avalanche signals a meaningful reallocation within the institutional crypto investment space. Both Layer 1 platforms, which had previously held positions in BITW, no longer satisfied the fund's market capitalization and weighting thresholds—indicating either relative market share deterioration or shifting competitive dynamics within the broader blockchain ecosystem. This departure reflects how actively managed index funds respond to measurable performance metrics and market structure changes.
As one of the world's largest crypto index fund managers, Bitwise's rebalancing decisions carry outsized significance for institutional capital flows. The index continues to emphasize Bitcoin and Ethereum as core holdings, with newer entrants like Hyperliquid and Stellar complementing the portfolio. These quarterly adjustments provide institutional investors, hedge funds, and family offices with systematic exposure to evolving market leadership while maintaining disciplined selection criteria.
Hyperliquid emerged as the primary beneficiary of this rebalance, driven by exceptional performance during 2026. The decentralized perpetual trading platform recorded a 165% year-to-date gain and processed $1.34 trillion in trading volume during the first half of 2026 alone, demonstrating robust institutional adoption and market demand. Following its inclusion, HYPE now represents a 0.93% allocation within BITW's portfolio construction.
The removal of Polkadot and Avalanche signals a meaningful reallocation within the institutional crypto investment space. Both Layer 1 platforms, which had previously held positions in BITW, no longer satisfied the fund's market capitalization and weighting thresholds—indicating either relative market share deterioration or shifting competitive dynamics within the broader blockchain ecosystem. This departure reflects how actively managed index funds respond to measurable performance metrics and market structure changes.
As one of the world's largest crypto index fund managers, Bitwise's rebalancing decisions carry outsized significance for institutional capital flows. The index continues to emphasize Bitcoin and Ethereum as core holdings, with newer entrants like Hyperliquid and Stellar complementing the portfolio. These quarterly adjustments provide institutional investors, hedge funds, and family offices with systematic exposure to evolving market leadership while maintaining disciplined selection criteria.
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