Bitwise will launch a live US spot HYPE ETF product with 21 stocks as institutional momentum gains momentum.
On May 14, the asset manager announced that its offering (BHYP) would feature a built-in staking feature and grant 100% exposure to the altcoin.
On why to be bullish on Hyperliquid decentralized platform, Bitwise said,
We believe Hyperliquid to be one of the most important on-chain trading platforms in the world. When geopolitical conflict erupted in the Middle East on a Sunday morning and traditional markets were closed, institutions didn’t wait until Monday. They turned to Hyperliquide.
The product will debut on the New York Stock Exchange (NYSE) today, May 15. The move comes just after Bitwise updated its filing, but its 0.34% fee is slightly higher than 21Shares’ 0.30%.
In particular, the latter spear the first American HYPE spot ETF on May 13. Over the past two days, 21Shares has raked in $2.5 million in net inflows.
A similar product from Grayscale is also expected to launch soon, but the timing of VanEck’s offering remains unclear.
Will the Coinbase deal fuel the HYPE rally?
That said, Coinbase has announced that it will be the official deployer of Hyperliquid’s USDC treasury. Additionally, it acquired Native Markets, the company behind the stablecoin USDH, which was initially intended to replace USDC on the DEX.
The initial goal of USDH was to reduce the hemorrhage of approximately $5 billion USDC circulating in hyperliquid. This supply generated approximately $200 million in interest income shared by Coinbase and Circle, with no positive impact on Hyperliquide.
So, isn’t Coinbase’s move a hostile takeover? This will include in particular sunset USDH from Native Market and make USDC the main liquidity in Hyperliquidity.
How is this even optimistic for the Hyperliquid ecosystem? Well, Coinbase complied with the DEX’s request to share interest income.
Under the agreement, Coinbase would return 90% of interest income to fund HYPE value accumulation programs, including redemptions.
In other words, the deal could put around $160 million to $180 million per year back into Hyperliquide. Commenting on the same, Austin Barack, Founder, Relayer Capital said:
$440,000 a day, every day. That’s how much (additional) $HYPE buying pressure comes from the Hyperliquide/Coinbase deal, beyond the $1.7 million in daily revenue already from trading fees.
HYPE price increased by 23% during the update and reached $47, a new yearly high, with whales. it’s been a long time on the altcoin.
Final summary
- The US is set to welcome its second HYPE ETF from Bitwise after 21Shares launched a similar product earlier this week.
- Analysts called the Coinbase deal bullish for Hyperliquid, with the potential for $160 million to $180 million in annual revenue flowing back into the DEX.
