Bitwise is launching a U.S. live spot HYPE product in partnership with 21Shares, as the institutional push gains momentum.
The asset manager, on the 14th May announced its BHYP offering will include a built-in staking function and provide 100% exposure for the altcoin.
Bitwise explains why it is bullish about the Hyperliquid decentralized platform said,
Hyperliquid, we believe, is the largest on-chain trading platform in the world. The institutions didn’t have to wait for Monday when geopolitical turmoil broke out early on Sunday in the Middle East. Hyperliquid became their go-to.
It will be launched on the New York Stock Exchange today, 15 May. It comes shortly after Bitwise’s filing was updated, and its fee of 0.34% will be slightly higher than that charged by 21Shares.
The latter is notable. launched The first U.S. spot ETF was launched on May 13th. 21Shares received $2.5m in net flows in the past two weeks.
VanEck has not yet announced a timeline for the launch of its product. A similar offering from Grayscale will also be launched soon.
The Coinbase Deal: Will it Fuel HYPE’s Rally?
Coinbase has announced it is Hyperliquid’s authorized treasury deploymenter for USDC. Also, Native Markets acquired the firm that created the USDH stablecoin, originally meant to replace USDC in the DEX.
USDH was initially introduced to reduce the loss of USDC (approximately $5 billion) that had been circulating within Hyperliquid. This supply generated about $200M of interest income, which was split between Coinbase and Circle. Hyperliquid did not benefit from this.
Coinbase is undergoing a hostile acquisition. In particular, the move will sunset Native Market’s USDH Make USDC your main currency in Hyperliquid.
What does that mean for the Hyperliquid Ecosystem? Coinbase has agreed to share interest earnings with the DEX.
Coinbase has agreed to return 90 percent of interest earnings in support of HYPE programs. This includes buybacks.
In other words the agreement could inject between $160 and $180M per year back into Hyperliquid. Austin Barack of Relayer Capital said the following:
Every day $440K is generated. This is how much additional $HYPE pressure comes from Hyperliquid/Coinbase’s deal, on top of the daily $1.7MM revenue generated by trading fees.
HYPE’s stock price jumped 23% following the announcement and tagged $47. A new yearly record, with whales. going long The altcoin market is booming.
Final summary
- Bitwise’s HYPE-ETF is the second most popular ETF in America after 21Shares introduced a similar product this past week.
- Analysts called the Coinbase deal bullish for Hyperliquid. They estimated that the DEX could receive $160 to 180M annually in revenue.
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Source: ambcrypto.com
