Bitwise stakes $114M in Hyperliquid token

• Bitwise has staked 1.775 million Hyperliquid (CRYPTO:HYPE) tokens worth about US$114 million, deepening its exposure to the decentralised derivatives platform.
• The investment follows the launch of Bitwise's BHYP exchange-traded fund, which combines HYPE price exposure with staking rewards.
• The asset manager's strategy reflects growing institutional interest in Hyperliquid, although the investment remains subject to market and protocol risks.

Bitwise has deposited and staked 1.775 million Hyperliquid (CRYPTO:HYPE) tokens valued at approximately US$114 million, expanding its investment in the decentralised derivatives protocol.

The transaction follows the launch of Bitwise's BHYP exchange-traded fund in May, which provides investors with exposure to HYPE while also seeking to generate staking rewards from the underlying tokens.

Bitwise previously described Hyperliquid as undervalued and has continued increasing its exposure through staking rather than holding the tokens passively.

The staking strategy reduces the supply of HYPE immediately available for trading while linking returns to both the token's market price and the trading activity generated by the Hyperliquid protocol.

Bitwise also allocates part of the BHYP fund's revenue to purchasing and staking additional HYPE, creating a mechanism that could increase demand for the token as assets under management grow.

The investment comes as institutional interest in Hyperliquid increases, with multiple asset managers pursuing regulated investment products linked to the protocol's native token.

The latest investment highlights how institutional investors are expanding beyond Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) to gain exposure to emerging blockchain networks, while remaining exposed to the operational and market risks associated with decentralised finance.

At the time of reporting, Hyperliquid price was $62.51.