Bitwise Asset Management has recently taken another step forward in its effort to bring a spot exchange-traded fund tied to Hyperliquid’s native HYPE token to market. In the latest amendment to its US Securities and Exchange Commission (SEC) registration statement, the firm named prominent digital-asset market makers Wintermute and Flowdesk as approved trading counterparties for the proposed fund.
The filing updates the operational guidelines / plan for the Bitwise Hyperliquid ETF, which is structured as a Delaware statutory trust.
Once launched, the vehicle would hold HYPE directly and seek to deliver performance that closely tracks the token’s value, less ordinary expenses.
Shares are expected to trade on NYSE Arca under the ticker symbol BHYP.
The sponsor has set a unitary management fee of 0.67 percent per year, paid in HYPE and calculated daily on the trust’s holdings.
To support efficient creation and redemption activity, the sponsor has entered into arm’s-length agreements with the newly designated counterparties.
These arrangements outline general terms for sourcing or selling HYPE but impose no obligation on the sponsor to route every transaction through any specific firm.
Authorized participants—registered broker-dealers that meet anti-money-laundering and sanctions compliance standards—will handle basket-sized creations and redemptions, which can occur either in-kind with HYPE or in cash.
Cash transactions will be executed via the approved counterparties or the prime execution agent, with blockchain analytics screening applied to safeguard against illicitly sourced assets.
The trust will custody its HYPE holdings with Coinbase Custody Trust Company, using segregated cold storage accounts protected by offline private keys, multi-signature controls, and ongoing security audits.
A small trading balance may be maintained with the prime execution agent for liquidity needs during creations, redemptions, or fee payments.
The sponsor assumes most routine operating costs, including legal expenses up to an annual cap, while extraordinary items such as taxes or unexpected brokerage charges may require the sale of a modest amount of HYPE.
This amendment arrives as investor interest in Hyperliquid begins to develop (though still very modest compared to most other major digital assets).
The protocol operates as a so-called “decentralized” perpetuals exchange on its own L1 blockchain and has attracted considerable trading volume since its inception.
The ETF would give traditional investors a regulated, exchange-listed way to gain exposure without the complexities of direct wallet management or on-chain custody.
As with any digital asset product, the filing underscores material risks.
Like with most other crypto-assets right now, HYPE prices have shown extreme volatility, with historical annualized figures exceeding 100 percent and sizable drawdowns possible in short periods.
As clarified in the update, the trust is not registered under the Investment Company Act of 1940, nor is the sponsor regulated as a commodity pool operator.
Regulatory uncertainty around the classification of HYPE, potential blockchain forks, smart contract vulnerabilities, and bridge dependencies for stablecoin liquidity all receive prominent disclosure.
Shares could trade at premiums or discounts to net asset value, particularly if authorized participants step back during periods of market stress.
By adding counterparties like Wintermute and Flowdesk—both recognized for deep liquidity provision across crypto markets—the sponsor aims to strengthen execution quality, tighten spreads, and improve resilience during volatile conditions.
The move also signals that the product is advancing through the later stages of the regulatory review process.
While no launch date has been confirmed at the time of writing, the inclusion of specific operational partners and finalized fee and ticker details suggests Bitwise is preparing for an eventual debut pending final SEC approvals.
For institutional and retail investors, the amendment represents progress toward a new on-ramp for DeFi ecosystems. If it ends up getting approved, the Bitwise Hyperliquid ETF could potentially join a small but steadily expanding group of spot crypto products.
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