Bitwise Labels HYPE 'Undervalued' Gen 2 Crypto Token Following ETF Launch

Key Facts

Bitwise's Chief Investment Officer has labeled the HYPE token as an undervalued digital asset, arguing that the market is currently mispricing Hyperliquid's business model. According to reports, the executive views the platform as a 'Gen 2' crypto asset that extends beyond being a simple venue for perpetual futures. The firm also confirmed the recent launch of a HYPE-based ETF and announced plans to utilize a portion of the generated management fees to purchase the token.

This institutional endorsement arrives amid growing momentum for crypto-linked funds, as major asset managers like BlackRock and Fidelity compete for market share. Per market data, the strategy of using ETF fees for token buybacks is a distinctive move that could bolster the token's fundamental value relative to its peers. Analysts note that Hyperliquid has previously recorded daily trading volumes exceeding $1 billion in 2024 (per DefiLlama data), supporting Bitwise's claim that the market underestimates the platform's scale.

Regarding price action, HYPE maintained steady levels following the announcement as of the close on May 19, 2026. Investors are closely monitoring liquidity inflows into the newly launched ETF as a primary catalyst for price movement in the coming days. While the upcoming economic calendar lacks direct crypto events, the recent U.S. Producer Price Index (PPI) data from May 13 showed inflationary pressures that may influence broader risk appetite for digital assets.