Hyperliquid Surges 23% as Bitwise Launches BHYP, ICE and CME Pressure CFTC

Hyperliquid News

The decentralized exchange Hyperliquid is at the center of a regulatory clash after Intercontinental Exchange and CME Group reportedly urged the Commodity Futures Trading Commission to address concerns about market integrity on the platform. The Hyperliquid Policy Center publicly dismissed those objections on Friday, arguing the protocol's open transaction record makes it hostile territory for insider trading or price manipulation. Singapore-based and operating without native know-your-customer requirements, the platform has generated $21.51 billion in notional Brent crude perpetual futures volume as energy-market volatility intensifies following the Iran conflict. The DEX continues to restrict users in the United States and Ontario.

Asset manager Bitwise launched a US-listed investment vehicle tied to Hyperliquid on Friday, expanding institutional access to the HYPE token through a fund trading on the New York Stock Exchange under the ticker BHYP. The product offers spot exposure to HYPE while staking a portion of its holdings through Bitwise's in-house staking division. The sponsor fee is set at 0.34%, with a full waiver on the first $500 million in assets during its inaugural month. Hyperliquid, a derivatives-focused layer 1 blockchain, processed roughly $2.9 trillion in trading volume in 2025 and held about 60% of global onchain derivatives open interest as of May 5.

The Hyperliquid Policy Center, a US-based advocacy group staffed by industry lawyers and lobbyists, expanded its defense of onchain derivatives this week, framing 24/7 trading as a structural upgrade rather than a regulatory loophole. Continuous markets eliminate the gaps and price discontinuities that occur when legacy venues close, the group argued, sharpening price discovery for commodities traders during overnight and weekend sessions. The advocacy push lands as ICE and CME reportedly press for Hyperliquid to register with the CFTC, a designation that would impose customer-tracking and surveillance duties on the platform and pull onchain DeFi derivatives squarely inside the US regulatory perimeter.

HYPE jumped more than 23% over a single trading session this week, briefly approaching $47 to reach its highest level since October 2025 before retracing part of the move. The catalyst stack lined up rapidly: two US spot Hyperliquid exchange-traded products went live within days of each other, Coinbase formalized its role around the platform's stablecoin infrastructure, and onchain trackers flagged accumulation by major venture investors. Momentum readings on the candlestick chart remained constructive into Friday, though traders cautioned that sustained upside through May would hinge on whether the new funds attract durable inflows rather than launch-week speculation alone.

The first US-listed Hyperliquid exchange-traded fund delivered its strongest session yet on Thursday, with 21Shares' THYP product recording $8.1 million in trading volume and roughly $4.9 million in net inflows. The vehicle benefited from a parallel announcement that Coinbase will serve as Hyperliquid's official treasury deployer, with Native Markets — the operator of the platform's USDH stablecoin — granting the exchange rights to purchase USDH brand assets. HYPE was the day's top-performing major asset, gaining roughly 14.55% by the US close, before consolidating around $43.63 on Friday morning as the rally cooled.

Institutional accumulation around HYPE has accelerated alongside the ETF launches, lifting the asset's profile among large-cap altcoin allocations. Onchain analytics flagged wallets linked to venture capital firm Andreessen Horowitz absorbing approximately $67 million worth of the token over the past month, with roughly $51 million of that position staked back into the network. The two listed Hyperliquid products have already pulled in nearly $8.2 million in cumulative net inflows since launch, while Grayscale Investments awaits a decision on its own proposed fund. HYPE now ranks as the tenth-largest cryptocurrency by market value at roughly $11.22 billion.

HYPE trades near $43.93 with a fractional intraday dip while holding firmly inside an established uptrend. The MACD remains bullish and the RSI at 58.57 sits in neutral-to-strong territory, leaving room before overbought conditions emerge. Immediate support clusters at $44.15 and $42.40, with deeper protection near $40.73, while resistance stacks at $44.61 and the more meaningful $47.00 ceiling that capped this week's rally. A decisive close above $47 would open a path toward $52.81 and a potential retest of the prior all-time high. The bullish thesis weakens if buyers lose $42.40 on heavy volume, signaling exhaustion in the ETF-driven impulse.