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- Hyperliquid entered the Bitwise ETF after strong trading growth and a 165% YTD token rally.
- Bitcoin and Ethereum remain the dominant institutional crypto holdings in the index.
- Polkadot and Avalanche were removed after falling below the ETF’s eligibility thresholds.
The latest rebalance of the Bitwise 10 Crypto Index ETF (BITW) offers a fresh look at where institutional investors see value in the digital asset market. While Bitcoin and Ethereum continue to dominate the fund, one of the biggest changes is the addition of Hyperliquid (HYPE), which replaces established names like Polkadot (DOT) and Avalanche (AVAX).
The update reflects how quickly leadership can change in crypto, especially as new projects gain market share and attract institutional capital. As one of the world’s largest crypto index funds, BITW adjusts its holdings based on market capitalization, liquidity, and other eligibility requirements, making its quarterly rebalance a closely watched event.
Hyperliquid Enters the Bitwise ETF After Explosive Growth
Hyperliquid has emerged as one of crypto’s standout performers in 2026. The decentralized perpetual trading platform has experienced rapid adoption, processing approximately $1.34 trillion in trading volume during the first half of the year while generating around $320 million in protocol revenue.
That momentum has translated into impressive gains for its native HYPE token, which has climbed roughly 165% since the beginning of the year. As a result, Hyperliquid now holds a 0.93% allocation in the Bitwise ETF, supported by a market capitalization of nearly $14.9 billion.
The inclusion also highlights growing institutional demand. Investment products tied to HYPE have attracted substantial inflows this year, underscoring increasing confidence in the project’s long-term potential despite occasional short-term fund outflows.
Bitcoin and Ethereum Continue to Lead
Although Hyperliquid’s addition grabbed headlines, Bitcoin remains the clear leader in the portfolio. The cryptocurrency accounts for 77.54% of the ETF, reinforcing its role as the primary institutional digital asset.
Ethereum maintains its position as the second-largest holding with a 13.04% allocation. XRP and Solana also continue to represent meaningful portions of the portfolio, while Cardano, Stellar, Chainlink, Litecoin, and Sui round out the remaining positions.
Notably, Stellar returned to the index after stronger adoption of blockchain payment solutions and tokenized asset initiatives improved its standing among major cryptocurrencies.
Why Polkadot and Avalanche Were Dropped
Polkadot and Avalanche were removed because they no longer satisfied the ETF’s market capitalization and portfolio weighting criteria. The decision does not necessarily reflect weakness in either ecosystem, but rather the rapid rise of competing projects that have grown faster over recent months.
Crypto index funds are designed to track the largest and most liquid digital assets, meaning portfolio changes often mirror broader shifts across the market.
The latest Bitwise ETF rebalance reinforces two important trends. First, Bitcoin and Ethereum remain the foundation of institutional crypto portfolios. Second, emerging projects with strong adoption and revenue growth can quickly earn a place alongside the industry’s largest assets.
Also Read: Bitwise Drops Bitcoin-Ethereum ETF Plan and Makes a $5M Hyperliquid Move — What’s Next?
For investors, the changes highlight the evolving nature of the crypto market, where innovation and sustained growth increasingly influence institutional portfolio decisions.
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!
