Bitwise Hyperliquid ETF begins trading on NYSE today, offering staking rewards

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Bitwise Hyperliquid ETF begins trading on NYSE today, offering staking rewards

Crypto asset manager Bitwise’s Hyperliquid ETF begins trading on the New York Stock Exchange today, May 15, under the ticker BHYP. The fund marks the first US-listed exchange-traded fund to offer investors exposure to Hyperliquid while also providing staking rewards through Bitwise Onchain Solutions, according to a report from The Block.

A first-of-its-kind structure for a crypto ETF

Unlike traditional crypto ETFs that simply track the price of a digital asset, BHYP is structured to generate yield through staking. Bitwise Onchain Solutions, a subsidiary of Bitwise Asset Management, will manage the staking process. This allows the fund to potentially distribute staking rewards to shareholders, creating a hybrid product that combines price exposure with income generation.

Hyperliquid is a layer-1 blockchain and decentralized exchange (DEX) platform known for its high-speed trading infrastructure. The ETF’s launch follows a wave of crypto-related ETF filings and approvals in the US, as regulators show increasing willingness to allow staking within fund structures.

Implications for the crypto ETF market

The approval and listing of BHYP signals a shift in how digital asset ETFs can operate. Staking has been a contentious issue with the SEC, which has previously questioned whether staked assets qualify as securities. By embedding staking directly into an ETF structure, Bitwise may have set a precedent for future products.

Industry analysts are watching closely to see whether other asset managers follow suit with similar staking-integrated ETFs. If successful, BHYP could open the door for more yield-generating crypto funds on major US exchanges, potentially attracting a broader base of institutional and retail investors.

What this means for investors

For investors, BHYP offers a regulated, exchange-traded way to gain exposure to Hyperliquid without directly holding or managing the underlying tokens. The staking component adds a potential income stream, though it also introduces additional risks related to staking mechanics, validator performance, and protocol security.

Bitwise has emphasized that the fund will comply with all SEC and NYSE listing requirements, and that staking rewards will be distributed in accordance with the fund’s prospectus. Investors should review the fund’s documentation carefully before investing.

Conclusion

The launch of the Bitwise Hyperliquid ETF on the NYSE represents a notable development in the evolution of crypto investment products. By combining ETF accessibility with staking rewards, BHYP may influence the design of future digital asset funds. Its performance and regulatory reception will be closely monitored by the broader financial industry.

FAQs

Q1: What is the ticker symbol for the Bitwise Hyperliquid ETF?
A1: The fund trades under the ticker BHYP on the New York Stock Exchange.

Q2: How does staking work within this ETF?
A2: Bitwise Onchain Solutions manages the staking of the underlying Hyperliquid tokens. Staking rewards generated are distributed to the fund’s shareholders, providing potential income in addition to price exposure.

Q3: Is this the first crypto ETF to include staking?
A3: BHYP is the first US-listed ETF to offer Hyperliquid staking rewards directly within the fund structure. It represents a new category of crypto ETFs that combine passive exposure with active yield generation.

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