Latest developments: Bitwise is leaning into Hyperliquid as one of crypto’s breakout platforms this cycle.

• Bitwise Head of Research Ryan Rasmussen said the firm is seeing strong investor interest in its HYPE ETF products following the recent launch of BHYP.
• Rasmussen said Bitwise differentiates itself by staking HYPE in-house to maximize yield for ETF investors.
• The firm also allocates 10% of management fees toward buying HYPE tokens for its own balance sheet “to align with the Hyperliquid community,” Rasmussen said.
• Bitwise publicly shares wallet addresses tied to its HYPE ETF reserves so investors can verify holdings on-chain.

What this means: Hyperliquid is increasingly being framed as infrastructure.

• Rasmussen argued Hyperliquid could become “one of the systems that most of traditional finance runs on in the future.”
• He pointed to growth in perpetual futures, prediction markets and spot trading as evidence the ecosystem is expanding beyond its initial niche.
• Rasmussen also cited tokenized equities, stablecoins and 24/7 trading as trends that could benefit Hyperliquid over the long term.
• He referenced the recent Coinbase-Hyperliquid partnership tied to USDC liquidity as another sign of institutional momentum.

The bull case: Bitwise believes Hyperliquid benefits from crypto’s changing regulatory climate.

• Rasmussen said projects like Hyperliquid can now launch with stronger token incentives because the industry faces less fear of regulatory crackdowns than in prior cycles.
• He highlighted Hyperliquid’s tokenomics, noting that “99% of fees generated on this platform are used to buy and burn HYPE tokens.”
• Rasmussen compared the mechanism to traditional stock buybacks, arguing it creates an easier narrative for investors to understand.
• Bitwise said it sees long-term upside tied to adoption of perpetuals, tokenization and blockchain-based financial infrastructure.

The risks: Regulatory scrutiny and macro uncertainty remain major concerns.

• Rasmussen acknowledged that U.S. oversight of perpetual futures markets could create pressure for Hyperliquid and similar platforms.
• He also cited inflation concerns, Federal Reserve policy and geopolitical tensions as broader risks affecting crypto markets.
• Traditional exchanges are reportedly pushing regulators to examine Hyperliquid more closely as decentralized competitors gain traction.
• Rasmussen characterized that resistance as typical of incumbents facing disruptive technologies.

Broader view: Financial advisors are moving beyond basic crypto skepticism.

• Rasmussen said wealth managers are increasingly asking about portfolio allocation, tokenization and stablecoins instead of questioning whether crypto will “go to zero.”
• Rasmussen said institutional adoption remains early despite growing interest from firms managing trillions of dollars.
• He described the quality of advisor conversations today as “so much better” than even two years ago.