Bitwise touts HYPE as ‘most mispriced’ as HYPE ETFs launch

Published: 2026-05-20 08:41:05 |

Crypto asset manager Bitwise, through CIO Matt Hougan, says Hyperliquid’s token HYPE is “one of the most mispriced assets in crypto today” despite a +77% year-to-date rally. Hougan argues the market is valuing HYPE mainly as a perpetual futures exchange, while Hyperliquid should be priced more like a global “super-app.” He points to diversification beyond crypto: non-crypto volume is close to half and could reach 70% by year-end, with recent reported trading volume of about $170B over the past month. A core part of the bull case is Hyperliquid’s buyback mechanism: 99% of trading fees are used to repurchase HYPE. Hougan estimates Hyperliquid revenue around $800M–$1B, implying HYPE’s current market cap is roughly 10–14x that buyback stream. New development in the later report: Bitwise launched an HYPE ETF on the NYSE, and 21Shares introduced a similar fund. Early net inflows for the Bitwise/NYSE launch were reported as relatively low (about $1.2M), compared with other altcoin ETF starts. The memo also ties the thesis to US regulatory momentum around “super-app” custody/trading under a single framework. However, traders should note Hyperliquid (and HYPE exposure via the exchange) is not currently available to US users, so regulatory execution remains a key risk. Net: The HYPE narrative could support altcoin beta and ETF-related sentiment, but near-term catalysts depend on US rollout and flows into HYPE ETFs.

Bullish

Bitwise’s bullish thesis directly targets HYPE’s valuation, arguing the market underprices HYPE versus a broader “super-app” business model and emphasizing a fee-to-buyback structure (99% of fees repurchased). That framework can attract traders seeking altcoin beta, especially as institutional access expands via newly listed HYPE ETFs. However, the later update shows early ETF inflows are modest, which can limit immediate upside. The biggest uncertainty remains near-term US availability and regulatory execution; if integration stalls, sentiment could fade. Overall, the setup is supportive but flow- and regulation-dependent, making the expected impact on HYPE price more bullish than neutral.