#What Changes Were Made to the Bitwise Crypto Index Fund?
Bitwise made significant adjustments to its flagship crypto index fund, notably removing Polkadot and Avalanche from the Bitwise 10 Crypto Index ETF, effective July 9. In their place, Hyperliquid, a newcomer to the scene, has been introduced with a 0.93% weighting, alongside Stellar, which received a 0.38% allocation.
This is a notable shift as Polkadot and Avalanche were included at the inception of the fund when it launched on the NYSE Arca in December 2025, marking a six-month period of inclusion.
#Why Does This Matter for Investors?
Understanding the implications of these adjustments is critical for investors. The Bitwise 10 Crypto Index ETF aims to reflect a market-cap-weighted index of the ten largest cryptocurrencies. Currently, Hyperliquid ranks as the tenth-largest by market capitalization, valued at around $15 billion, thanks in part to its strong position in decentralized perpetual futures trading.
Stellar, on the other hand, has a longer history, first introduced to the market in 2014, establishing itself as a longstanding player in the altcoin arena.
#What Should Investors Know About Hyperliquid's Supply?
A key aspect to consider is Hyperliquid's circulating supply, with only about 22% of its total 1 billion tokens available for trading. This means approximately 780 million tokens remain locked and are set for future release. When calculating for full dilution, Hyperliquid's potential market cap could reach $64 billion, which places it among the top five cryptocurrencies.
To counteract supply pressure, Hyperliquid employs a buyback mechanism that utilizes trading fees to repurchase HYPE tokens from the market.
#How is Bitwise Responding?
In response to market conditions, Bitwise also launched a dedicated Spot Hyperliquid ETF, identified by the ticker BHYP, on May 15. This product has a sponsor fee of 0.34% and presents staking options that allow investors to earn yields on their HYPE investments.
#What Eventual Risks Should Investors Consider?
With the majority of Hyperliquid's supply still locked, even minor releases may lead to significant price fluctuations. Investors holding positions in BHYP or BITW must recognize that exposure to Hyperliquid introduces dilution risks, unlike more established cryptocurrencies such as Bitcoin and Ethereum.
The sponsor fee of 0.34% on BHYP is competitive for the crypto fund space and reflects a growing trend of fee competition among crypto ETF providers. Lower fees generally translate to better returns for investors, ensuring that more profits stay in their pockets rather than with fund managers.