Matt Hougan, Chief Investment Officer at Bitwise, has asserted that Hyperliquid (HYPE) represents one of the most mispriced assets in the current digital asset market. In a thesis originally detailed in a May 19 memo and discussed in multiple subsequent reports through May 30, 2026, Hougan argued that the protocol is being valued too narrowly. He suggested the project is evolving into a financial “super-app” whose addressable market is the $600 trillion global asset pool rather than just the $3 trillion crypto universe.
This perspective comes as the Bitwise Hyperliquid ETF (BHYP) enters its third week of trading on the New York Stock Exchange (NYSE) following its May 15 debut. While the native HYPE token has performed well, rising 77% year-to-date to become the best-performing large-cap crypto asset of 2026, Bitwise leadership believes the market still underestimates its impact. The protocol now handles approximately $170 billion in monthly trading volume, with nearly half of that activity driven by non-crypto assets like equities and commodities.
Bitwise describes HYPE as a “Gen 2” token, distinguishng it from earlier DeFi governance tokens. Under the current model, 99% of platform fees are directed toward HYPE token buybacks, creating a direct link between platform volume and value accrual. “More trading → more buybacks → more value accrual. No ambiguity,” Hougan noted. This mechanical value capture is a central component of the institutional interest currently surrounding the protocol.
Hyperliquid target market reaches beyond the $3 trillion crypto ecosystem
The core of the Bitwise argument is that Hyperliquid is no longer just a decentralized exchange for crypto perpetuals. It has expanded to include S&P 500 futures, pre-IPO stocks, and prediction markets. Hougan noted that the market currently values the project as a growing crypto futures exchange, but he believes it should be viewed as a global infrastructure for all asset classes, including forex and structured products.
Ryan Rasmussen, Head of Research at Bitwise, suggested that the protocol could eventually become the “core infrastructure” on which traditional finance operates. The platform’s support for 24-hour trading and stock tokens has positioned it as a competitor to legacy systems. As investor sentiment shifts toward integrated financial platforms, Hyperliquid is capturing volume that traditional marketplaces have historically dominated.
The protocols’ financial metrics show estimated annualized revenues between $800 million and $1 billion. Bitwise research indicates HYPE is valued at roughly 10 to 14 times its buyback flow. For context, platform Robinhood carries a price-to-earnings ratio of 37, while the CME Group sits at 24. While these are different business models, the gap highlights why Bitwise views the current HYPE valuation as significantly dissociated from its revenue-generating potential.
Institutional engagement and performance of the BHYP ETF
The Bitwise Hyperliquid ETF, trading under the ticker BHYP, reflects growing institutional interest in this specific ecosystem. Bitwise has integrated the protocol into its own corporate strategy, committing to use 10% of the BHYP management fees to purchase HYPE tokens for the firm’s balance sheet. The fund carries a 0.34% management fee, which was waived for the first month for the first $500 million in assets under management to stimulate early adoption.
Other major financial institutions are also moving into the space. Grayscale is currently negotiating an arrangement for its Hyperliquid Staking ETF (HYPG), which would involve exchanging fund shares for 2 million HYPE tokens, a position worth approximately $115 million. While some competitors like 21Shares saw modest debut week inflows of $1.2 million for their HYPE-linked funds, the overall trend points toward deeper professional involvement.
Traditional market infrastructure providers are also watching the protocol closely. The Intercontinental Exchange (ICE), the parent company of the NYSE, has reportedly held multiple meetings with Hyperliquid representatives to discuss on-chain perpetual futures. ICE is reportedly seeking a “level playing field” from U.S. regulators, suggesting that major legacy exchanges view on-chain protocols as serious long-term competitors for market share.
Growth projections for the trading super-app through 2026
The outlook for the remainder of the year hinges on Hyperliquid’s ability to continue absorbing traditional market volume. Ryan Rasmussen projects that non-crypto assets will account for 70% of the platform’s total trading volume by the end of 2026. This shift would mark a major transition from its origins as a crypto-native tool into a generalized financial utility used by a broader range of market participants.
Market participants are also keeping a close eye on large-scale positioning within the ecosystem. As reported recently, a Hyperliquid whale defended the $40 level with a significant long bet, indicating high-conviction support even during periods of price volatility. If the protocol continues to scale its prediction markets and spot trading features, it may validate Hougan’s claim that it belongs in a much larger valuation category.
The broader implication for the industry is a move away from governance-only tokens toward assets that capture direct economic value from platform utility. If Hyperliquid succeeds in capturing even a small fraction of the $600 trillion global asset market, it would redefine the role of blockchain in global finance. For now, Bitwise remains focused on the discrepancy between the current $3 trillion crypto lens and the much larger global infrastructure lens.