Bitwise, the crypto asset manager, will funnel 10% of the management fees collected from its Hyperliquid ETF into purchases of the HYPE token. The move, announced Tuesday, effectively puts a portion of the fund's revenue stream to work buying the underlying asset on the open market.
How the allocation works
The 10% of fees will be used to acquire HYPE tokens periodically, though Bitwise has not specified the exact schedule or whether purchases will be made in bulk or incrementally. The ETF itself tracks an index tied to Hyperliquid, a decentralized platform whose native token is HYPE. By rebating a slice of the management fee back into token purchases, Bitwise is effectively giving the fund a built-in buy pressure mechanism.
What this means for ETF holders
Investors in the Hyperliquid ETF will see a portion of their fee dollars returned in the form of increased HYPE exposure. The allocation does not change the ETF's expense ratio or its net asset value calculation — it simply redirects some of the cash the fund collects into more HYPE. For long-term holders, the strategy could amplify gains if HYPE appreciates, but it also concentrates the fund's exposure to the token beyond its index weighting.
Bitwise's broader strategy
The allocation is the latest in a series of moves by Bitwise to integrate token mechanics into its ETF products. The firm has previously launched funds tied to other crypto assets and has experimented with staking rewards and fee structures. By using fee income to buy HYPE, Bitwise aligns its own revenue stream with the token's market performance — a structure that some investors may see as a commitment to the Hyperliquid ecosystem.
Bitwise did not disclose the dollar amount the 10% allocation represents, nor how frequently the purchases will occur. The first buy under the new policy is expected before the end of the current quarter.
