HYPE Defies Crypto Selloff After Bitwise ETF Debut On NYSE, Even Amid Oversight Concerns

• Hyperliquid’s HYPE token rose more than 5% after Bitwise launched the BHYP ETF on the New York Stock Exchange.
• Retail sentiment around Hyperliquid on Stocktwits improved to ‘bullish’ territory, while chatter levels jumped to ‘high’ from ‘low’ levels.
• HYPE outperformed the broader cryptocurrency market, which remained under pressure during morning trade on Friday.

Hyperliquid (HYPE) tokens defied the broader downturn in the equity and cryptocurrency markets in morning trade, rallying after Bitwise launched its Hyperliquid ETF (BHYP) on the New York Stock Exchange, even amid reports of increased regulatory scrutiny.

HYPE’s price rallied gained over 5% to touch an intra-day high of over $46 before paring gains to around $43.70. Retail sentiment on Stocktwits around the decentralized exchange rose to ‘bullish’ from ‘bearish’ over the past day, and chatter increased to ‘high’ from ‘low’ levels.

The rally came despite renewed regulatory scrutiny surrounding the platform and broader pressure across digital assets. The overall cryptocurrency market tumbled over 2.2% in the last 24 hours to around $2.71 trillion, bogged down by losses in software stocks and mixed market sentiment around President Donald Trump’s meeting with Chinese President Xi Jinping in Beijing. 

Bitcoin (BTC) fell 2.3% to just above $79,000. Solana (SOL), Ethereum (ETH) and Dogecoin (DOGE) led losses among the major cryptocurrencies. 

Bitwise ETF Debut Lifts Hyperliquid

“Hyperliquid’s rise over the past few years is the stuff of legend,” Bitwise said in a statement announcing the ETF launch. The asset manager stated Hyperliquid has a  cumulative perpetual futures trading volume of $4.4 trillion. It also pointed to the platform’s ability to process roughly 200,000 orders per second and noted that HYPE has already become the 10th-largest cryptocurrency by market capitalization less than two years after launch.

The rally in HYPE came even after Bloomberg reported that CME Group and Intercontinental Exchange (ICE) are pressing U.S. regulators to tighten oversight of Hyperliquid.

According to the report, the exchanges raised concerns with the Commodity Futures Trading Commission (CFTC) and lawmakers that Hyperliquid’s anonymous trading environment could create risks tied to market manipulation. It added that CME and ICE warned the Singapore-based platform could potentially be exploited by insiders or sanctioned entities.

HYPE’s price has gained more than 82% this year, while Bitcoin’s price has fallen over 8%. 

Read also: Trump Trust Bought Into COIN, MSTR, MARA Stocks In Q1 — The Same Quarter His Administration Pushed Pro-Crypto Legislation

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