Bitwise CIO Sees Hyperliquid (HYPE) Tapping a $600 Trillion Market Opportunity

Bitwise Chief Investment Officer Matt Hougan believes Hyperliquid (HYPE) should be valued against the broader global financial market rather than the cryptocurrency sector alone. According to Hougan, Hyperliquid’s potential extends far beyond crypto’s roughly $3 trillion market, positioning it to compete within the estimated $600 trillion global asset ecosystem.

Speaking during a recent interview with ETF expert Nate Geraci, Hougan highlighted the strong early performance of BHYP, Bitwise’s spot Hyperliquid ETF. Since launching on the New York Stock Exchange in mid-May, the fund has attracted nearly $60 million in inflows. Hougan described the product as one of the most successful single-asset crypto exchange-traded product launches since the introduction of Bitcoin-focused investment vehicles.

A key factor behind his bullish outlook is Hyperliquid’s token model. Hougan explained that HYPE represents a new generation of exchange tokens, differing significantly from earlier crypto exchange assets. The platform directs the majority of its trading fee revenue toward token buybacks, creating a structure designed to support long-term value for holders.

He also emphasized that Hyperliquid should be viewed as a financial technology platform rather than a traditional cryptocurrency application. The protocol uses blockchain technology in the background while delivering a trading experience that aims to improve upon conventional financial systems.

One of the platform’s most notable trends is the growing share of non-crypto trading activity. Hougan stated that approximately 50% of Hyperliquid’s current perpetual futures volume comes from assets outside the crypto market, including products linked to the S&P 500 and oil. He expects that figure to eventually exceed 90%, reflecting broader adoption among traditional asset traders.

Despite its momentum, Hyperliquid faces challenges. Hougan acknowledged that major financial institutions, including the New York Stock Exchange and CME Group, along with competing decentralized finance platforms, could become significant rivals in the future. Additionally, U.S. investors still cannot directly access the offshore exchange.

At the time of writing, HYPE was trading near $68, gaining roughly 10% over the previous 24 hours and ranking among the largest digital assets by market capitalization. Bitwise’s BHYP ETF currently stakes around 70% of its holdings through the company’s infrastructure, while 10% of management fees are allocated toward purchasing and holding HYPE on the firm’s balance sheet.