Bitwise transferred 1.775 million HYPE tokens worth about $114 million to Hyperliquid and staked the entire position. The move comes as Hyperliquid's priority fee burn has surged 45-fold since mainnet launch, with 21,895 HYPE tokens burned to date.
Back
Bitwise stakes $114M in HYPE as Hyperliquid fee burns accelerate
Bitwise staked 1.775 million HYPE, worth about $114 million, on Hyperliquid, the asset manager said June 28.
The deposit was routed through Bitwise's BHYP ETF, which launched May 15 on NYSE Arca and directs 10% of management fees toward buying and staking HYPE on the firm's balance sheet, according to the fund's prospectus.
The position builds on weeks of accumulation. Bitwise previously bought 77,097 HYPE worth about $5.18 million in a single transaction, steadily converting fund inflows into staked tokens. The ETF debuted with the largest opening day for a US spot altcoin fund this year, triggering a short squeeze that lifted HYPE about 5%.
The institutional commitment coincides with growing demand from Hyperliquid's fee mechanism. Since the April 14 mainnet launch, traders have burned 21,895 HYPE through priority fees, with weekly spending rising from 24 HYPE in the first week to 1,106 HYPE in the past seven days — a 45-fold increase, on-chain data show. Distinct payers expanded from 14 to 130, suggesting broadening adoption.
The staking reduces the amount of HYPE immediately available on the market. When large holders lock their tokens, liquid supply contracts, reinforcing the supply-side pressure from fee burns.
Not all institutional flows are one-directional. While Bitwise increased its long-term commitment, 21Shares sold roughly $1.8 million worth of HYPE, equal to nearly 3% of its ETF assets under management, according to Farside data. The move appears consistent with portfolio rebalancing rather than broad institutional capitulation.
Multicoin Capital has projected HYPE could reach $319 by 2028, according to a published forecast.
Bitwise is not alone in chasing Hyperliquid exposure. 21Shares, with its THYP product, and Grayscale, which has entered the HYPE ETF competition with a Nasdaq listing plan, are also vying for market share. Spot HYPE ETFs collectively logged one of the strongest altcoin debuts on record, absorbing a meaningful share of the token's circulating supply within their first weeks.
This article is for informational purposes only and does not constitute investment advice.
[1] Bitwise double down on the crypto HYPE bet with a massive investment[2] Hyperliquid demand deepens as institutions chase staking yields – Just a fad? - Cryptonews.net[3] 🚨 BREAKING: Multicoin Capital has predicted $HYPE could reach $319 by 2028. https://t.co/5WqgOxmLfU - KuCoin[4] Bitwise Stakes $114 Million in HYPE on Hyperliquid as Its Spot ETF Doubles Down - Cryptonews.net
