# Bitwise Hyperliquid ETF

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Bitwise Hyperliquid ETF).

## Overview

Bitwise Hyperliquid ETF is a U.S.-listed exchange-traded product that holds Hyperliquid and seeks to provide investors with exposure to its value through shares traded on NYSE Arca under the ticker BHYP. The Trust is sponsored and managed by Bitwise Investment Advisers, LLC, uses a CME CF Hyperliquid–Dollar Reference Rate for NAV pricing, and may earn additional Hyperliquid through staking.

## Products & services

• Exchange-traded shares providing Hyperliquid exposure
• Direct holdings of Hyperliquid
• Hyperliquid staking activities
• Daily NAV valuation using a reference rate
• Creation and redemption in Hyperliquid

- **Hyperliquid exposure** (85%) — Shares provide brokerage-account access to the value of Hyperliquid held by the Trust.
- **Staking rewards** (10%) — The Trust stakes Hyperliquid through a validator and receives net staking rewards.
- **Fund administration and market access** (5%) — The ETF structure supports creation, redemption, custody, valuation, and exchange trading.

- Exchange-traded shares providing Hyperliquid exposure
- Direct holdings of Hyperliquid
- Hyperliquid staking activities
- Daily NAV valuation using a reference rate
- Creation and redemption in Hyperliquid

## Customers

The primary customers are investors seeking Hyperliquid exposure through a conventional brokerage account rather than directly acquiring and safeguarding the digital asset. Institutional Authorized Participants and liquidity providers support share creations and redemptions by delivering or receiving Hyperliquid, while exchange-based investors trade BHYP shares in the secondary market. The structure is also designed for investors implementing strategic or tactical digital-asset allocation strategies without using derivatives.

- **Retail brokerage investors** (primary) — Buy BHYP shares to obtain Hyperliquid exposure without directly managing wallets or digital-asset transactions.
- **Institutional allocators** (primary) — Use the exchange-traded structure for strategic or tactical exposure within existing investment accounts.
- **Authorized Participants** (primary) — Create and redeem shares by transferring Hyperliquid or receiving the underlying asset.
- **Liquidity providers** (secondary) — Provide Hyperliquid and market liquidity for primary-market activity and ETF trading.

- Retail investors seeking brokerage-based Hyperliquid exposure
- Institutional allocators using digital-asset allocation strategies
- Authorized Participants supporting creations and redemptions
- Liquidity providers facilitating primary-market transactions
- Secondary-market traders seeking exchange liquidity

## Geography

The Trust is a U.S.-organized investment vehicle whose shares trade on NYSE Arca and whose NAV is calculated in U.S. dollars. Its operations depend on U.S.-accessible digital-asset markets, with Lukka identifying eligible markets and selecting a principal market based on trading volume, activity, and price stability. The Trust does not itself transact on digital-asset markets; Authorized Participants and liquidity providers conduct the relevant market transactions.

- U.S.-listed on NYSE Arca under ticker BHYP
- NAV and pricing benchmark are denominated in U.S. dollars
- Uses U.S.-accessible digital-asset markets for valuation
- Lukka evaluates exchanges by volume and price stability
- Authorized Participants transact across eligible digital-asset markets

## Strategy

The Trust’s strategy is to provide exchange-traded access to Hyperliquid while avoiding the operational barriers of direct ownership, including direct trading and asset custody. It holds the underlying digital asset rather than using derivatives, and seeks incremental asset accumulation through staking. Principal-market selection and standardized benchmark pricing are intended to support consistent daily NAV calculation and reliable secondary-market access.

- **Maintain efficient exchange-traded Hyperliquid access** (long-term) — The ETF structure reduces direct custody and trading barriers for investors.
- **Accumulate incremental assets through staking** (medium-term) — Staking can increase the Trust's Hyperliquid holdings beyond market appreciation.
- **Improve valuation consistency** (short-term) — A defined benchmark and principal-market process support daily NAV determination.

- Provide brokerage-account access to Hyperliquid exposure
- Hold underlying Hyperliquid rather than use derivatives
- Generate additional Hyperliquid through validator staking
- Use a standardized CME CF pricing benchmark for NAV
- Apply principal-market analysis to support fair valuation

## Risks

The Trust’s value is concentrated in Hyperliquid, so sharp digital-asset price declines, weak trading liquidity, market manipulation, or changes to the Hyperliquid Network could materially reduce NAV and trading appeal. Its operating model also depends on Authorized Participants, liquidity providers, custodians, validators, exchanges, the benchmark provider, and other service providers. Valuation differences between the benchmark, principal-market pricing, and secondary-market prices can create NAV discrepancies, while staking introduces validator, network, and reward risks.

- **Concentration in Hyperliquid** [critical] — The Trust primarily holds one digital asset, leaving NAV highly sensitive to its price and network adoption.
- **Digital-asset market volatility** [high] — Rapid price changes can create substantial NAV movements and secondary-market premiums or discounts.
- **Market liquidity and principal-market risk** [high] — Reduced volume or unstable pricing can make valuation and creations or redemptions more difficult.
- **Staking and validator risk** [high] — Validator failure, network disruption, slashing, or protocol changes could reduce expected staking rewards or assets.
- **Service-provider dependency** [high] — The Trust relies on Bitwise, Lukka, CF Benchmarks, custodians, exchanges, APs, and liquidity providers.
- **Regulatory and legal uncertainty** [high] — Changes affecting digital assets, staking, exchanges, or exchange-traded products could impair operations or demand.

- Hyperliquid price volatility can sharply reduce NAV
- Digital-asset liquidity may deteriorate during market stress
- Network, protocol, or validator failures could impair staking
- Benchmark and principal-market prices may diverge
- Dependence on APs and service providers may disrupt operations
- Regulatory changes could restrict digital-asset ETF activity

## Accounting

The Trust is an investment company under U.S. GAAP and measures Hyperliquid at fair value under ASC 946 and ASC 820, making the selected principal market and valuation inputs central to reported assets and results. NAV uses the CME CF Hyperliquid–Dollar Reference Rate, while the principal-market NAV uses pricing identified through Lukka’s market-selection process, creating potential valuation differences. Staking rewards are recognized net of the validator’s retained amount, and sponsor fees are calculated at 0.34% of Hyperliquid holdings.

- **Fair value measurement** — Reported assets, NAV, and realized or unrealized gains can change materially with market prices.
- **Pricing benchmark** — Benchmark methodology and constituent-market data affect daily NAV.
- **Principal-market NAV** — Principal-market NAV may differ from the standard benchmark-based NAV.
- **Staking rewards** — Investment income and Hyperliquid holdings reflect only the Trust's net entitlement.
- **Sponsor fee accrual** — Fee expense changes with the value and quantity of underlying holdings.

- ASC 946 investment-company accounting drives fair-value presentation
- ASC 820 principal-market selection affects reported NAV
- Benchmark and principal-market prices can produce valuation differences
- Staking rewards are recorded net of validator retention
- Sponsor fees vary with Hyperliquid holdings at a 0.34% rate
- Digital-asset price changes drive realized and unrealized gains

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*Last updated: 2026-09-08T07:02:16.968467+00:00*