Bitwise HYPE ETF adds $10.5 million to its holdings after a four-day suspension

Bitwise Hyperliquid ETF restarts increasing holdings in HYPE

On September 4, Bitwise's Hyperliquid exchange-traded funds (ETFs) resumed accumulating HYPE tokens after four consecutive days of unrecorded purchases. According to blockchain intelligence platform Arkham tracking, wallet addresses associated with Bitwise purchased approximately $10.5 million worth of HYPE during this period.

Record cumulative positions

According to Arkham's address attribution analysis, since the launch of BHYP products, its recorded total HYPE purchases have reached US$166.3 million. Friday's deal was the largest increase in the product since the largest single-day purchase on Aug. 27 at $23.2 million. Arkham describes BHYP as the "largest HYPE ETF," a ranking based on addresses identified by its analysts and the market value of the tokens allocated to each product.

It is worth noting that Bitwise has not yet issued an official announcement confirming this figure of US$166.3 million. Therefore, Arkham's data should be treated as third-party estimates rather than audited flow of funds data. The reported four-day suspension refers only to wallet activity identified by Arkham and does not prove that the fund did not receive any investor orders during this period.

ETF mechanism and data interpretation considerations

The $10.5 million transaction ended the longest recent interval in BHYP-related cumulative activity reported by Arkham. However, this action should not be automatically interpreted as a single investor purchasing $10.5 million of fund shares. Exchange-traded cryptocurrency products create and redeem shares through authorized participants (APs). Depending on the fund's operating structure, the fund may receive cash or tokens during this process. As a result, its HYPE acquisitions may reflect net share creation, liquidity management or settlement activities involving multiple investors.

Blockchain data can identify transfers between marked addresses, but does not always reveal the commercial purpose of each transfer. Address ownership may change, and transfers of internally held funds may be mistakenly regarded as purchases if the sending address and transaction route are not identified by analysts.

Official documents confirm direct holding of HYPE

Bitwise announced in May the launch of BHYP, a U.S. -listed financial product designed to directly hold HYPE tokens rather than derivatives that track their prices. The fund started trading on NYSE Arca on May 15 and started operations the day before.

Its Securities and Exchange Commission registration filing states that the trust's primary goal is to reflect the value of its HYPE positions, net of operating expenses and liabilities. Bitwise markets the tool as an ETF, but its regulatory documents describe it as a Delaware statutory trust that issues exchange-traded shares. This structure allows broker customers to gain regulated HYPE exposure without having to maintain a crypto-wallet or interact directly with Hyperliquid. Investors remain exposed to token price risks, fund fees, potential tracking errors and risks related to crypto custody.

Pledge Strategies and Rates

BHYP's quarterly report designated Anchorage Digital Bank as the HYPE custodian of the trust. The filing also confirmed that part of the fund's positions can be pledged to generate income. Bitwise's fund website lists a goal of pledging 70% of its assets. The BHYP product page reported in early September that the gross pledge return rate was 2.25%, and the net return rate was 1.18%. These rates are subject to change and do not represent guaranteed benefits.

Valuation differences and market competition

BHYP's designation as the "largest HYPE ETF" is broadly consistent with its early strong demand. However, unless Bitwise publishes equivalent data, the estimated value of $166.3 million should not be regarded as officially managed net asset value. The value of the tokens tracked may differ from the fund's net assets. The net asset value reported by ETFs includes liabilities, cash, accruals and other accounting items. The dollar value of the identified wallet will also fluctuate continuously with the market price of HYPE.

When comparing HYPE-related products, consistent timestamps and valuation methods are needed. Bitwise competes with products such as 21Shares and Grayscale. Grayscale is reportedly preparing a fund called HYPG with a proposed rate of 0.29%.

Differences between demand structure and repurchase mechanism

BHYP purchases are only part of HYPE's demand structure. Hyperliquid also operates an agreement mechanism that uses revenue from transaction fees to purchase HYPE through its aid fund. These purchases are not ETF inflows, but stem from activity on the Hyperliquid trading platform and continue in accordance with the agreed fee allocation rules. Combining them with BHYP's activities would exaggerate the demand for investment products.

It was reported that by late May, Hyperliquid had used more than $1.16 billion in expense revenue for HYPE purchases. The mechanism links HYPE demand to platform revenue, while ETF purchases depend on investor creation and redemption. In addition, Bitwise has established another smaller connection between its business and tokens: the manager commits to use 10% of the BHYP management fee to purchase and hold HYPE on its corporate balance sheet. These purchases belong to Bitwise rather than ETF trusts, and therefore should not be counted as fund positions.

Importance of future disclosures

Bitwise's official positions, net asset value and outstanding shares are the clearest way to verify Arkham's estimates. Changes in these data can show whether reported wallet accumulation corresponds to the creation of new ETF shares. Later SEC reports will provide audited or reviewed accounting information, although quarterly reports arrive after the transactions covered. Daily fund disclosures may provide more current data, but they may use different valuation times than Arkham's real-time blockchain calculations.

Investors should also pay attention to the revision of Arkham's address label. Custody transfers, pledged moves or newly identified addresses may change the platform's estimates and do not represent new investor needs. There is currently no evidence that the $10.5 million purchase caused a specific change in HYPE prices. Token prices are also influenced by broader crypto market conditions, derivative positioning, agreement repurchase and trading activities. Any claim that specific price changes are attributed to the sole impact of BHYP remains speculative.