Hyperliquid Spot ETF Latest Developments, BHYP May Become the First DeFi Spot ETF

On April 10, 2026, Bitwise Asset Management submitted a second amendment (S-1 amendment) for the proposed spot Hyperliquid ETF to the U.S. Securities and Exchange Commission. The update clarifies that the ETF will be listed and traded on NYSE Arca, a subsidiary of the New York Stock Exchange, with the trading symbol BHYP and an annual management fee of 0.67%. Bloomberg senior ETF analyst Eric Balchunas pointed out that the product code and management fee are typically key signals before an ETF is approved for launch, suggesting BHYP may be within a 30 to 60-day window before its official rollout.

What key elements are anchored in the core revisions

The core information of this amendment revolves around three dimensions. First is the final confirmation of the product code BHYP, which is the fundamental identifier for the ETF’s trading functionality. Second is the 0.67% annual management fee, which is significantly higher than the near-zero fee range common among mainstream spot Bitcoin ETFs but aligns with the fee logic for altcoin products due to liquidity differences and custody costs. Third is the integration of a staking mechanism— the fund will stake most of its HYPE holdings to earn additional yields, with about 85% of staking rewards after fees allocated to holders. This design gives BHYP an extra income source beyond a standard spot ETF.

Where does the core market competition focus lie

The 0.67% fee rate has attracted market attention. From an investor’s perspective, if HYPE tokens experience significant price volatility, the impact of the fee difference on total returns is relatively limited; however, from a product competitiveness standpoint, the fee structure is a critical variable in ETF selection. Balchunas described this fee as “very interesting,” noting that Bitwise is not the only applicant for a HYPE ETF—Grayscale has also submitted an application for GHYP, and 21Shares and VanEck are similarly developing comparable products. In a landscape where multiple institutions compete for the “first Hyperliquid spot ETF” title, the fee structure will directly influence the product’s appeal to institutional investors.

How does the staking yield add differentiation to the ETF structure

Unlike traditional spot ETFs, BHYP will stake approximately 70% of its HYPE holdings while maintaining 30% liquidity reserves, with 15% of staking rewards allocated for operational expenses. This means investors in this ETF not only gain exposure to HYPE’s spot price but also indirectly participate in the staking rewards distribution of the Hyperliquid network. From a risk perspective, the staking mechanism introduces additional complexity: staking involves smart contract risks, slashing risks, and liquidity mismatch risks. However, compared to retail investors directly staking, the ETF reduces technical barriers and operational risks through professional custodians (Anchorage Digital) and staking operators (Attestant). This “spot exposure + staking yield” dual-layer structure could become a standard template for future DeFi-style ETFs.

Does the protocol’s fundamentals support the ETF narrative

The progress of BHYP depends on growth data from the Hyperliquid protocol itself. According to DefiLlama, Hyperliquid’s total value locked (TVL) in DeFi remains between $4.9 billion and $5.4 billion, with no significant outflows even during market volatility. In the first quarter of 2026, the platform’s derivatives trading volume reached $492.7 billion, with approximately $185.5 billion traded over the past 30 days, accounting for about 34% of the total trading volume across the top ten on-chain perpetual contract platforms. Regarding protocol revenue, daily fee income remains stable between $1.7 million and $1.9 million. These data points indicate that Hyperliquid has established a sizable on-chain trading ecosystem, providing a solid demand base for the ETF’s underlying assets.

What market signals can be read from HYPE’s price trend

As of April 13, 2026, according to Gate data, HYPE’s trading price is approximately $42.34 USD. Since the beginning of 2026, HYPE has increased by about 65%, with nearly 200% growth over the past 12 months. Meanwhile, circulating supply accounts for roughly 24.8% of the maximum total supply, with a fully diluted valuation estimated between $35 billion and $39 billion. The price trend’s positive correlation with protocol usage—specifically, the on-chain open interest in perpetual contracts maintained between $6 billion and $10 billion—indicates that market pricing of the token is anchored by fundamental factors rather than purely narrative-driven speculation.

How will multiple institutions competing simultaneously change the industry landscape

Bitwise first submitted an application for a Hyperliquid spot ETF in September 2025, followed by 21Shares in October 2025 and Grayscale in March 2026. The competition among these three entities for the same space essentially reflects different bets by traditional asset managers on the narrative of “DeFi protocol value capture.” Hyperliquid’s core feature is its Layer 1 blockchain integrated with a native perpetual contract DEX, representing a “chain + application” vertical integration model that differs significantly from the modular architecture of traditional DeFi protocols. If BHYP or similar products are approved, it would mark the SEC’s first approval of a spot ETF centered on a specific decentralized application, paving the way for future compliant products based on protocols like Uniswap, Aave, and others.

How will ETF approval impact the Hyperliquid ecosystem structurally

The ETF’s approval will bring multiple structural impacts to Hyperliquid. First, it broadens capital channels—traditional brokerage account holders can gain exposure to HYPE without self-custody, greatly lowering entry barriers. Second, liquidity aggregation—ETF as a continuous buyer of HYPE could provide structural support to secondary market prices. Third, regulatory endorsement—the SEC’s approval of the HYPE ETF itself constitutes an indirect confirmation of the protocol’s compliance, potentially encouraging more traditional institutions to collaborate with Hyperliquid. However, the fact that the ETF’s custodians and staking operators are centralized entities creates inherent tension with Hyperliquid’s decentralized protocol logic, and this contradiction will likely persist as the product is implemented.

What are the next steps in the regulatory pathway

Looking at the SEC’s history of approving crypto ETFs, there is no fixed pattern in the time between submitting an S-1 amendment and receiving approval. Spot Bitcoin ETFs have faced years of regulatory tug-of-war, while spot Ethereum ETFs have seen relatively faster approval processes. For Hyperliquid, which is still a “non-mainstream” asset, the SEC’s focus may center on whether the staking mechanism constitutes an unregistered securities offering, whether custody arrangements meet compliance standards, and how to classify the HYPE token. Bitwise’s amendment includes references to a pricing mechanism (provided by CF Benchmarks for daily quotes) and multiple counterparties (FalconX, Flowdesk, Nonco, Wintermute), aiming to address regulatory concerns about market manipulation risks.

Summary

Bitwise’s second amendment for the Hyperliquid ETF finalizes the trading code BHYP, management fee of 0.67%, and staking yield structure, marking the product’s entry into the final pre-listing phase. Amid competition from Grayscale, 21Shares, and others, the approval of the first Hyperliquid spot ETF will be a milestone not only for product success but also for how DeFi assets can enter mainstream finance in a compliant ETF form. The Hyperliquid protocol’s fundamentals—over $4.9 billion TVL and nearly $500 billion in quarterly trading volume—provide real data support for this narrative. However, the complexity of the staking mechanism, token unlock pressures, and SEC’s regulatory stance on DeFi assets remain key hurdles to overcome before product launch.

FAQ

Q: How does the 0.67% management fee of BHYP compare?

It is higher than the near-zero to 0.3% fee range typical of mainstream spot Bitcoin ETFs, but considering HYPE’s liquidity features, custody costs, and staking operational expenses, this fee is reasonable within the altcoin ETF space.

Q: How are staking rewards distributed to investors in BHYP?

The fund stakes about 70% of its HYPE holdings to generate additional HYPE tokens. After deducting 15% for operational expenses, approximately 85% of the staking net rewards are allocated to the fund’s assets, indirectly reflected in the net asset value of fund shares.

Q: When is BHYP expected to go live?

Based on Bloomberg analyst Eric Balchunas’s assessment, it typically takes 30 to 60 days from code and fee determination to approval, but the exact timing depends on SEC’s approval pace, with no specific date yet.

Q: How do other HYPE ETF applications differ from BHYP?

Grayscale’s application is for GHYP, while details of 21Shares and VanEck’s products are not fully disclosed. Differences may include fee structures, staking reward sharing ratios, and counterparties involved.

Q: How is Hyperliquid’s current data performance?

As of April 2026, Hyperliquid’s TVL is approximately $4.9 to $5.4 billion, quarterly derivatives trading volume around $492.7 billion, HYPE token price about $42.34 USD (Gate data), with a year-to-date increase of about 65%.