Latest developments: Bitwise is leaning into Hyperliquid as one of crypto’s breakout platforms this cycle.
Bitwise Head of Research Ryan Rasmussen said the firm is seeing strong investor interest in its HYPE ETF products following the recent launch of BHYP.
Rasmussen said Bitwise differentiates itself by staking HYPE in-house to maximize yield for ETF investors.
The firm also allocates 10% of management fees toward buying HYPE tokens for its own balance sheet “to align with the Hyperliquid community,” Rasmussen said.
Bitwise publicly shares wallet addresses tied to its HYPE ETF reserves so investors can verify holdings on-chain.
What this means: Hyperliquid is increasingly being framed as infrastructure.
Rasmussen argued Hyperliquid could become “one of the systems that most of traditional finance runs on in the future.”
He pointed to growth in perpetual futures, prediction markets and spot trading as evidence the ecosystem is expanding beyond its initial niche.
Rasmussen also cited tokenized equities, stablecoins and 24/7 trading as trends that could benefit Hyperliquid over the long term.
He referenced the recent Coinbase-Hyperliquid partnership tied to USDC liquidity as another sign of institutional momentum.
The bull case: Bitwise believes Hyperliquid benefits from crypto’s changing regulatory climate.
Rasmussen said projects like Hyperliquid can now launch with stronger token incentives because the industry faces less fear of regulatory crackdowns than in prior cycles.
He highlighted Hyperliquid’s tokenomics, noting that “99% of fees generated on this platform are used to buy and burn HYPE tokens.”
Rasmussen compared the mechanism to traditional stock buybacks, arguing it creates an easier narrative for investors to understand.
Bitwise said it sees long-term upside tied to adoption of perpetuals, tokenization and blockchain-based financial infrastructure.
The risks: Regulatory scrutiny and macro uncertainty remain major concerns.
Rasmussen acknowledged that U.S. oversight of perpetual futures markets could create pressure for Hyperliquid and similar platforms.
He also cited inflation concerns, Federal Reserve policy and geopolitical tensions as broader risks affecting crypto markets.
Traditional exchanges are reportedly pushing regulators to examine Hyperliquid more closely as decentralized competitors gain traction.
Rasmussen characterized that resistance as typical of incumbents facing disruptive technologies.
Broader view: Financial advisors are moving beyond basic crypto skepticism.
Rasmussen said wealth managers are increasingly asking about portfolio allocation, tokenization and stablecoins instead of questioning whether crypto will “go to zero.”
Rasmussen said institutional adoption remains early despite growing interest from firms managing trillions of dollars.
He described the quality of advisor conversations today as “so much better” than even two years ago.
