ETF demand for HYPE is now dramatically outpacing the token's built-in supply reduction mechanism, a dynamic that could tighten available supply further.
“The market is rewarding real trading volume, fee generation, user engagement, and the perception that Hyperliquid is becoming one of the few crypto native platforms capable of competing with centralized exchange experiences,” Jason Rindahl, CEO of Nebula DeFi, told Decrypt.
Bitwise doubles down on HyperliquidBitwise, one of the two issuers to file HYPE ETFs last week, published the wallet addresses for its Bitwise Hyperliquid ETF on Wednesday. “Hyperliquid's DNA is all about transparency. Everything is onchain. Don't trust, verify," the firm tweeted.
In a similar show of support, Bitwise announced Monday it would devote 10% of the ETF's management fee to holding HYPE on its balance sheet, calling it a “community-first model” aligned with Hyperliquid's 99% revenue buyback mechanism. “If the protocol succeeds, the community succeeds,” the firm wrote.
In it, he argued the market is mispricing HYPE and identified two errors: a “category error” where investors value Hyperliquid as a crypto perpetual exchange rather than a global super-app for all assets, and an “anchoring error” where investors lump HYPE together with first-generation governance tokens rather than comparing it to high-growth financial infrastructure like Robinhood or CME.
“Hyperliquid is one of the most important crypto projects to emerge in years,” Hougan wrote. “I still think investors are underestimating its impact and its value.”
The mixed reaction in tech stocks following Nvidia’s earnings did little to dampen altcoins’ optimistic sentiment.
