Bitwise Files S-1/A for Hyperliquid ETF, Targets Staking Yield

TL;DR

**Bitwise is launching a Hyperliquid ETF with staking, signaling a bullish bet on altcoin adoption and potential yield generation in the crypto ETF space.**

AI Summary

The Bitwise Hyperliquid ETF (BHYP) filed an S-1/A on December 15, 2025, to offer an exchange-traded product providing exposure to Hyperliquid, a digital asset. The Trust's primary objective is to track the value of Hyperliquid, less expenses, using the CF Hype Dollar US Settlement Price as its benchmark. A secondary objective is to derive additional Hyperliquid through staking, with Anchorage Digital Bank N.A. serving as the Hyperliquid Custodian. Bitwise Asset Management, Inc. provided $200 in seed capital on November 24, 2025, purchasing 8 Shares at $25 each. Bitwise Investment Manager, LLC is expected to purchase initial Baskets of 100,000 Shares for $2,500,000 at $25 per share, with proceeds used to acquire Hyperliquid. The Trust will charge a unitary management fee of 0.67% per annum of its Hyperliquid holdings. The offering is continuous, and the Trust is not regulated under the Investment Company Act of 1940 or the Commodity Exchange Act of 1936.

Why It Matters

This S-1/A filing signals Bitwise's intent to launch a new cryptocurrency ETF, the Bitwise Hyperliquid ETF (BHYP), offering investors regulated access to Hyperliquid, a top-12 digital asset by market capitalization. For investors, it provides a traditional brokerage avenue to a volatile asset class, potentially simplifying direct ownership complexities. The inclusion of staking as a secondary objective could offer a yield component, differentiating it from simple spot ETFs and intensifying competition in the burgeoning crypto ETF market against existing Bitcoin and Ethereum products. Employees and customers of Bitwise and its service providers like Anchorage Digital Bank N.A. will see increased activity and potential growth opportunities.

Risk Assessment

Risk Level: high — The filing explicitly states, "AN INVESTMENT IN THE TRUST MAY NOT BE SUITABLE FOR INVESTORS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED WITH OTHER EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD HYPERLIQUID OR INTERESTS RELATED TO HYPERLIQUID. THE SHARES ARE SPECULATIVE SECURITIES. THEIR PURCHASE INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT." This direct warning, coupled with the inherent volatility and nascent regulatory environment of digital assets like Hyperliquid, indicates a high-risk investment.

Analyst Insight

Investors should approach the Bitwise Hyperliquid ETF with extreme caution, recognizing the high degree of risk associated with speculative digital assets. Consider allocating only a small, diversified portion of your portfolio to BHYP if you have a high-risk tolerance and a long-term investment horizon, understanding the potential for significant capital loss.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$200

total Debt

$0

net Income

$0

eps

$0

gross Margin

N/A

cash Position

$200

revenue Growth

N/A

Key Numbers

• 0.67% — Sponsor Fee (Annual unitary management fee of the Trust's Hyperliquid holdings)
• $200 — Seed Capital Investment (Amount purchased by Bitwise Asset Management, Inc. on November 24, 2025)
• 8 — Seed Shares (Number of shares purchased by the Seed Capital Investor)
• $25 — Per-Share Price (Price for Seed Shares and initial Baskets)
• $2,500,000 — Initial Baskets Purchase (Expected purchase amount by Bitwise Investment Manager, LLC for 100,000 Shares)
• 10,000 — Shares per Basket (Block size for creation and redemption of Shares)
• 12th — Hyperliquid Market Cap Rank (Hyperliquid's position among over 18,000 digital assets as of December 4, 2025)

Key Players & Entities

• Bitwise Hyperliquid ETF (company) — Registrant and exchange-traded product
• Bitwise Investment Advisers, LLC (company) — Sponsor and manager of the Trust
• NYSE Arca, Inc. (company) — Anticipated listing exchange for BHYP
• CF Benchmarks Ltd. (company) — Benchmark Provider for the CF Hype Dollar US Settlement Price
• Anchorage Digital Bank N.A. (company) — Hyperliquid Custodian for the Trust's Hyperliquid holdings
• Bitwise Asset Management, Inc. (company) — Parent of the Sponsor and Seed Capital Investor
• Bitwise Investment Manager, LLC (company) — Affiliate of the Sponsor, expected to purchase initial Baskets
• Richard Coyle, Esq. (person) — Legal counsel from Chapman and Cutler LLP
• Myles O’Kelly, Esq. (person) — Legal counsel from Chapman and Cutler LLP
• Hunter Horsley (person) — Representative from Bitwise Investment Advisers, LLC

FAQ

Risk Factors

• Volatility of Hyperliquid Price [high — market]: The Trust's value is directly tied to the price of Hyperliquid, which is subject to extreme volatility. The S-1/A filing mentions Hyperliquid's market cap rank as 12th among over 18,000 digital assets as of December 4, 2025, indicating a significant but potentially volatile asset class.
• Uncertain Regulatory Landscape [high — regulatory]: The Trust is not regulated under the Investment Company Act of 1940 or the Commodity Exchange Act of 1936. This lack of specific regulation for digital assets like Hyperliquid creates uncertainty regarding future regulatory changes that could impact the Trust's operations or the underlying asset.
• Reliance on Service Providers [medium — operational]: The Trust relies on various service providers, including Bitwise Asset Management, Inc. for seed capital and Bitwise Investment Manager, LLC for initial basket purchases. The custody of Hyperliquid assets by Anchorage Digital Bank N.A. also presents operational risks if these providers fail to perform their duties.
• Management Fee Impact [medium — financial]: The Trust charges a unitary management fee of 0.67% per annum of its Hyperliquid holdings. While seemingly modest, this fee will reduce the net returns to investors over time, especially in a volatile market.
• Staking Risks [medium — market]: The secondary objective of deriving additional Hyperliquid through staking introduces risks associated with staking protocols, including potential slashing penalties, validator downtime, or changes in staking rewards, which could negatively impact the Trust's NAV.
• Legal and Compliance Risks [medium — legal]: The evolving nature of digital assets means the Trust and its underlying asset, Hyperliquid, could face unforeseen legal challenges or compliance issues as regulations develop globally.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing institutional interest in providing regulated access to cryptocurrencies. Competitors are offering ETFs for various digital assets, but exposure to newer or more niche assets like Hyperliquid presents unique challenges in terms of market maturity and regulatory clarity. The success of such ETFs hinges on robust tracking mechanisms, secure custody, and navigating a complex and often uncertain regulatory environment.

Regulatory Implications

The Trust's explicit exclusion from the Investment Company Act of 1940 and the Commodity Exchange Act of 1936 highlights a significant regulatory gray area. Investors face potential risks from future regulatory actions that could impact Hyperliquid or the ETF's structure. Compliance with evolving digital asset regulations globally will be a continuous challenge for the Trust.

What Investors Should Do

1. Review the 'Risk Factors' section thoroughly, paying close attention to market volatility and regulatory uncertainty related to Hyperliquid.
2. Understand the impact of the 0.67% management fee on potential returns, especially considering Hyperliquid's volatility.
3. Evaluate the reliance on third-party service providers, including the custodian and management team, and their track records.
4. Monitor regulatory developments concerning digital assets and their impact on ETFs.

Key Dates

• 2025-12-15: Filing of S-1/A — Indicates the Trust's intention to offer an exchange-traded product providing exposure to Hyperliquid and outlines the structure and fees.
• 2025-11-24: Seed Capital Investment — Bitwise Asset Management, Inc. provided $200 in seed capital, purchasing 8 shares at $25 each, demonstrating initial commitment and funding.
• 2025-12-04: Hyperliquid Market Cap Rank — Hyperliquid was ranked 12th among over 18,000 digital assets, providing context on its relative market position and potential investor interest.

Glossary

S-1/A

An amendment to a registration statement filed with the U.S. Securities and Exchange Commission (SEC) for a new securities offering. (This is the document detailing the structure, risks, and offering of the Bitwise Hyperliquid ETF.)

Hyperliquid

A specific digital asset that the ETF aims to track. (The underlying asset of the ETF, whose price volatility and regulatory status are key concerns.)

CF Hype Dollar US Settlement Price

The benchmark price used by the Trust to track the value of Hyperliquid. (This defines the primary reference point for the ETF's performance measurement.)

Staking

The process of actively participating in transaction validation (similar to mining) on a proof-of-stake blockchain to earn rewards. (A secondary objective of the Trust to generate additional Hyperliquid holdings, introducing associated risks and potential rewards.)

Anchor Digital Bank N.A.

The designated custodian for the Trust's Hyperliquid assets. (Crucial service provider responsible for the secure holding of the ETF's primary asset.)

Unitary Management Fee

A single, all-inclusive fee charged by the ETF sponsor to cover management and operational expenses. (The fee structure (0.67%) directly impacts the net returns for investors.)

Basket

A block of ETF shares (100,000 in this case) that authorized participants use to create or redeem new ETF shares. (The mechanism for creating and redeeming ETF shares, ensuring the ETF price stays close to its net asset value.)

Seed Capital

Initial funding provided to an investment product to cover early operational costs and establish initial share value. (The $200 provided by Bitwise Asset Management, Inc. represents the initial investment to launch the ETF.)

Year-Over-Year Comparison

As this is an initial S-1/A filing, there is no prior filing to compare against. Key metrics such as revenue, margins, and debt levels are not yet established for a public entity. The filing primarily outlines the proposed structure, objectives, fees (0.67% management fee), and initial seed capital ($200) for the Bitwise Hyperliquid ETF.

Key Financial Figures

• $200 — eed Capital Investor agreed to purchase $200 in Shares on November 24, 2025, and on
• $25 — ery of 8 Shares at a per-Share price of $25 (the “Seed Shares”). The $2
• $2,500,000 — chase the initial Baskets of Shares for $2,500,000, at a per-Share price of $25 for these
• $1.235 billion — uo; upon the earliest of (i) its having $1.235 billion or more in annual revenues, (ii) at lea
• $700 million — more in annual revenues, (ii) at least $700 million in market value of Shares being held by
• $1.0 billion — affiliates, (iii) its issuing more than $1.0 billion of non-convertible debt over a three-ye

Filing Documents

• ea0269454-s1a1_bitwise.htm (S-1/A) — 1350KB
• ea026945401ex3-2_bitwise.htm (EX-3.2) — 6KB
• ea026945401ex3-3_bitwise.htm (EX-3.3) — 207KB
• ea026945401ex5-1_bitwise.htm (EX-5.1) — 11KB
• ea026945401ex8-1_bitwise.htm (EX-8.1) — 15KB
• ea026945401ex10-1_bitwise.htm (EX-10.1) — 24KB
• ea026945401ex10-2_bitwise.htm (EX-10.2) — 236KB
• ea026945401ex10-3_bitwise.htm (EX-10.3) — 72KB
• ea026945401ex10-4_bitwise.htm (EX-10.4) — 324KB
• ea026945401ex10-5_bitwise.htm (EX-10.5) — 144KB
• ea026945401ex10-6_bitwise.htm (EX-10.6) — 102KB
• ea026945401ex10-7_bitwise.htm (EX-10.7) — 83KB
• ea026945401ex10-8_bitwise.htm (EX-10.8) — 50KB
• ea026945401ex10-9_bitwise.htm (EX-10.9) — 212KB
• ea026945401ex10-10_bitwise.htm (EX-10.10) — 99KB
• ea026945401ex10-11_bitwise.htm (EX-10.11) — 51KB
• ea026945401ex23-1_bitwise.htm (EX-23.1) — 2KB
• ea026945401ex-fee_bitwise.htm (EX-FILING FEES) — 14KB
• fin_001.jpg (GRAPHIC) — 6KB
• fin_002.jpg (GRAPHIC) — 4KB
• ex5-1_001.jpg (GRAPHIC) — 12KB
• ex8-1_001.jpg (GRAPHIC) — 11KB
• ex10-4_001.jpg (GRAPHIC) — 6KB
• ex10-5_001.jpg (GRAPHIC) — 6KB
• ex10-6_001.jpg (GRAPHIC) — 7KB
• ex10-7_001.jpg (GRAPHIC) — 7KB
• ex10-10_001.jpg (GRAPHIC) — 25KB
• ex10-10_002.jpg (GRAPHIC) — 53KB
• ex10-10_003.jpg (GRAPHIC) — 25KB
• 0001213900-25-121386.txt ( ) — 3347KB
• ea026945401ex-fee_bitwise_htm.xml (XML) — 5KB

RISK FACTORS

RISK FACTORS 10 HYPERLIQUID, HYPERLIQUID MARKET AND REGULATION OF HYPERLIQUID 59 THE TRUST AND HYPERLIQUID PRICES 64 staking 70 CALCULATION OF NAV 74 ADDITIONAL INFORMATION ABOUT THE TRUST 73 THE TRUST’S SERVICE PROVIDERS 79 CUSTODY OF THE TRUST’S ASSETS 82 FORM OF SHARES 83 TRANSFER OF SHARES 83 SEED CAPITAL INVESTOR 84 PLAN OF DISTRIBUTION 84 CREATION AND REDEMPTION OF SHARES 86

USE OF PROCEEDS

USE OF PROCEEDS 90 90 CONFLICTS OF INTEREST 91 FIDUCIARY AND REGULATORY DUTIES AND OBLIGATIONS OF THE SPONSOR 92 LIABILITY AND INDEMNIFICATION 94 PROVISIONS OF LAW 96 MANAGEMENT; VOTING BY SHAREHOLDERS 96 MEETINGS 96 BOOKS AND RECORDS 96 96 FISCAL YEAR 97 GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION 97 LEGAL MATTERS 97 EXPERTS 97 MATERIAL CONTRACTS 98 UNITED STATES FEDERAL INCOME TAX CONSEQUENCES 102 PURCHASES BY EMPLOYEE BENEFIT PLANS 108 INFORMATION YOU SHOULD KNOW 110 SUMMARY OF PROMOTIONAL AND SALES MATERIAL 110 INTELLECTUAL PROPERTY 111 WHERE YOU CAN FIND MORE INFORMATION 111 PRIVACY POLICY 111 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 112 113 This Prospectus contains information you should consider when making an investment decision about the Shares. You may rely on the information contained in this Prospectus. The Trust and the Sponsor have not authorized any person to provide you with different information and, if anyone provides you with different or inconsistent information, you should not rely on it. This Prospectus is not an offer to sell the Shares in any jurisdiction where the offer or sale of the Shares is not permitted. The Shares are not registered for public sale in any jurisdiction other than the United States. Until _____________, 2025 (25 days after the date of this prospectus), all dealers effecting transactions in the Shares, whether or not participating in this distribution, may be required to deliver a prospectus. This requirement is in addition to the obligations of dealers to deliver a prospectus when acting as underwriters and with respect to unsold allotments or subscriptions. The Sponsor first intends to use this prospectus on _____________, 2025. i REGARDING FORWARD-LOOKING STATEMENTS This Prospectus

View Full Filing

View this S-1/A filing on SEC EDGAR