Bitwise Stakes $114 Million of HYPE on Hyperliquid

Bitwise has deposited a large amount of capital into the Hyperliquid network, a decentralized derivatives exchange.

Lookonchain said on June 26 that Bitwise deposited 1.775 million HYPE into Hyperliquid and staked the entire amount. The tokens were worth about $114 million.

Bitwise has recently stepped up investment across the Hyperliquid ecosystem, including by launching a spot Hyperliquid exchange-traded fund. Matt Hougan, Bitwise's chief investment officer, previously called Hyperliquid "the most undervalued token" and said it is a financial super app that goes beyond a crypto derivatives exchange to encompass stocks and commodities.

The market has interpreted the large staking transaction as either part of spot ETF operations or a strategic move to secure additional staking rewards. Hyperliquid rewards network participants who stake HYPE tokens based on their contribution to validation.

News of the asset manager's direct deposit of about $100 million could also reduce HYPE's circulating supply and help support the token's price.