Bitwise Expands HYPE Holdings with Strategic ETF Buybacks
- On June 15, Bitwise acquired 77,097 HYPE tokens valued at approximately $5.18 million via FalconX.
- The firm allocates 10% of BHYP ETF fees to purchasing and staking HYPE, with total inflows nearing $107 million.
- Hyperliquid’s buyback mechanism absorbs about 97% of exchange trading fees, complementing Bitwise’s strategy.
- Bitwise launched the BHYP ETF on the NYSE in May, offering in-house staking through its Onchain Solutions division.
- Venture firm a16z has become one of the largest HYPE holders, amassing over $190 million worth of tokens.
Bitwise’s ongoing accumulation of HYPE is part of a strategic effort to leverage both fee-funded buybacks and in-house staking to enhance shareholder returns through a roughly 2.25% annual staking yield. This approach aligns with Hyperliquid’s own mechanisms that tighten token supply by repurchasing HYPE using trading fees.
The competitive landscape intensifies as rival funds like Grayscale’s HYPG offer lower sponsor fees, challenging issuers to innovate beyond cost advantages alone. Bitwise’s strategy may influence others to adopt similar models to maintain market position.(Source)
