Latest developments: Bitwise is leaning towards Hyperliquid as one of crypto’s breakout platforms this cycle.
- Bitwise head of research Ryan Rasmussen said the firm is seeing strong investor interest in its HYPE ETF products following the recent launch of BHYP.
- Rasmussen said Bitwise differentiates itself by betting HYPE internally to maximize returns for ETF investors.
- The firm is also allocating 10% of management fees to purchase HYPE tokens for its own balance sheet “to align with the Hyperliquid community,” Rasmussen said.
- Bitwise publicly shares wallet addresses linked to its HYPE ETF holdings so investors can verify holdings on the chain.
What this means: Hyperliquid is increasingly being framed as infrastructure.
- Rasmussen argued that Hyperliquid could become “one of the systems that most traditional finance runs on in the future.”
- He pointed to growth in perpetual futures, prediction markets and spot trading as evidence that the ecosystem is expanding beyond its original niche.
- Rasmussen also mentioned tokenized stocks, stablecoins and 24/7 trading as trends that could benefit Hyperliquid in the long term.
- He cited the recent Coinbase-Hyperliquid partnership tied to USDC liquidity as another sign of institutional momentum.
The bull case: Bitwise believes that Hyperliquid is benefiting from crypto’s changing regulatory climate.
- Rasmussen said projects like Hyperliquid can now be launched with stronger token incentives because the industry faces less fear of regulatory intervention than in previous cycles.
- He highlighted Hyperliquid’s tokenomics, noting that “99% of fees generated on this platform are used to buy and burn HYPE tokens.”
- Rasmussen compared the mechanism to traditional share buybacks and argued that it creates an easier narrative for investors to understand.
- Bitwise said it sees long-term upside tied to adoption of perpetuities, tokenization and blockchain-based financial infrastructure.
Risks: Regulatory scrutiny and macro uncertainty remain major concerns.
- Rasmussen acknowledged that US oversight of perpetual futures markets could create pressure for Hyperliquid and similar platforms.
- He also cited inflation concerns, Federal Reserve policy and geopolitical tensions as broader risks affecting crypto markets.
- Traditional exchanges are reportedly pushing regulators to scrutinize Hyperliquid as decentralized competitors gain traction.
- Rasmussen characterized the resistance as typical of established companies facing disruptive technologies.
wider view: Financial advisors are moving beyond basic crypto-skepticism.
- Rasmussen said asset managers are increasingly asking about portfolio allocation, tokenization and stablecoins rather than questioning whether crypto will “go to zero.”
- Rasmussen said institutional adoption remains early, despite growing interest from companies managing trillions of dollars.
- He described the quality of counselor interviews today as “so much better” than even two years ago.
