Bitwise Asset Management has filed a second amendment to its proposed spot ETF tracking Hyperliquid's HYPE token, according to recent SEC filings. The submission reaffirms the fund's ticker symbol BHYP and a management fee of 0.67%, standard for crypto equity products in Bitwise's lineup. Bloomberg's senior ETF analyst Eric Balchunas interpreted the amendment as a signal that regulatory approval may arrive within weeks rather than months, suggesting the fund's sponsor is fine-tuning final details with the SEC.
The filing reflects broader institutional appetite for exposure to emerging crypto ecosystems beyond Bitcoin and Ethereum. Hyperliquid, a decentralized perpetual futures exchange built on its own blockchain, has gained traction among sophisticated traders for its high throughput and low-friction trading environment. An ETF vehicle would democratize access to HYPE—eliminating the friction of self-custody, exchange account creation, and on-chain interaction—while providing regulatory guardrails attractive to traditional investors and advisors prohibited from direct token ownership. Bitwise's track record with its Bitcoin and Ethereum ETFs suggests the firm has built institutional credibility with the SEC, potentially accelerating approval timelines for derivative assets.
The 0.67% fee sits competitively within the emerging category of specialized crypto ETFs, though notably higher than Bitwise's flagship Bitcoin offering at 0.20%. This premium reflects both the operational complexity of tracking a smaller-cap token and the regulatory novelty involved. Unlike spot Bitcoin ETFs, which the SEC greenlit in 2024 after years of resistance, spot crypto ETFs for individual altcoins remain untested regulatory territory. Each approval sets precedent, potentially opening pathways for additional issuers seeking similar products.
Timing matters here: Hyperliquid's ecosystem has matured significantly since its 2023 launch, with billions in open interest and a growing developer community. An SEC-approved ETF would validate the exchange's operational stability while signaling institutional-grade standards for emerging derivatives platforms. The amendment's specificity on fees and structure suggests Bitwise expects imminent approval, though the SEC's final decision remains unpredictable. If successful, this filing could catalyze a wave of similar applications targeting the next generation of established but non-legacy crypto infrastructure.