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- Bitwise officially withdrew its proposed Bitcoin and Ethereum ETF registration with the SEC.
- The company bought 77,097 HYPE tokens worth about $5.18 million as interest in Hyperliquid grows.
- Hyperliquid ETF demand highlights a shift toward newer crypto investment opportunities.
Crypto investment firm Bitwise has withdrawn its planned Bitcoin and Ethereum ETF registration with the US Securities and Exchange Commission (SEC), signaling a strategic shift as competition in the digital asset investment market continues to grow. At the same time, the company has increased its exposure to Hyperliquid’s HYPE token, highlighting rising institutional interest in alternative crypto products.
The move comes as asset managers compete for investor attention across Bitcoin ETFs, Ethereum ETFs, and newer crypto-focused investment vehicles. While Bitwise has stepped away from one ETF proposal, its recent activity suggests the firm is exploring opportunities beyond traditional crypto assets.
Bitwise Withdraws Bitcoin and Ethereum ETF Application
Bitwise submitted a Form RW filing with the SEC to remove its S-1 registration statement for the proposed Bitwise Bitcoin & Ethereum ETF. The filing explained that the planned transaction was not completed and that no shares were issued under the registration.
The ETF was designed to give investors exposure to Bitcoin and Ethereum through a regulated fund structure. However, Bitwise already operates separate spot Bitcoin and Ethereum ETFs, including the Bitwise Bitcoin ETF (BITB) and Bitwise Ethereum ETF (ETHW).
BITB has attracted significantly more investor capital, with net assets under management reaching around $2.45 billion, while ETHW holds approximately $198 million. Increasing competition in the ETF sector, including new products entering the market, may have influenced Bitwise’s decision to discontinue the filing.
Bitwise Expands Hyperliquid Exposure With $5 Million HYPE Purchase
While removing the Bitcoin and Ethereum ETF application, Bitwise has increased its investment in Hyperliquid. Data from blockchain analytics platform Arkham shows the company purchased 77,097 HYPE tokens through FalconX, with the purchase valued at roughly $5.18 million.
Following the acquisition, HYPE became one of Bitwise’s largest crypto holdings, ranking behind major assets such as Bitcoin, Solana, and Ethereum. The firm’s wallet now holds more than 428,000 HYPE tokens valued at about $31.59 million.
The move reflects growing attention around Hyperliquid, a decentralized trading platform that has gained popularity among crypto investors. Bitwise recently launched a Hyperliquid ETF on NYSE Arca under the ticker BHYP, offering investors exposure to the ecosystem.
Hyperliquid ETF Attracts Investor Demand
Investor interest in Hyperliquid products has increased even as some traditional crypto ETFs have faced pressure. The Bitwise Hyperliquid ETF recorded strong inflows, reaching about $171.81 million in total net inflows.
The fund reportedly attracted $15.5 million in inflows on Monday, while HYPE’s market performance has also strengthened. The token gained nearly 20% over the past week, reaching around $73.70.
The shift shows how crypto investment firms are adapting to changing market demand. While Bitcoin and Ethereum remain dominant digital assets, institutional players are increasingly exploring newer blockchain projects with growing adoption.
Also Read: Bitwise Calls Hyperliquid “Most Mispriced” Crypto as HYPE Jumps 77% in 2026
Bitwise’s decision to withdraw its Bitcoin and Ethereum ETF filing marks a notable change in direction for the crypto asset manager. Instead of expanding another traditional ETF product, the firm appears to be increasing its focus on emerging opportunities like Hyperliquid. As competition in the crypto investment industry grows, institutional strategies may continue to evolve around new assets and market trends.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
