Bitwise Bullish on Hyperliquid: HYPE Labeled ‘Undervalued’ As It Rallies 20%

Bitwise Chief Investment Officer Matt Hougan issued a strongly bullish view on Hyperliquid and its native token, HYPE, shortly after Bitwise launched a HYPE exchange-traded fund (ETF) last week. 

In his comments, Hougan argued that the market is mispricing Hyperliquid’s broader business model—treating it as essentially just another perpetual futures venue.

Hougan said Hyperliquid appears to be caught in what he described as a “pricing error,” with investors valuing the platform as little more than a perpetual futures exchange. 

In contrast, he framed Hyperliquid as a global financial “super app,” one that is moving beyond the boundaries of crypto and expanding into areas such as stocks, commodities, foreign exchange, and prediction markets. 

As part of his valuation perspective, Hougan estimated the platform’s annual revenue could be in the range of about $800 million to $1 billion, suggesting room for the business to scale well beyond how it’s currently categorized by the market.

A key element of Hougan’s case involves Hyperliquid’s fee model. He pointed to a structure in which 99% of trading fees are directed toward HYPE token buybacks, describing it as a mechanism that helps support value rather than simply extracting revenue without a token-linked benefit. 

That, he said, aligns incentives in a way that differs from what investors may be assuming when they treat Hyperliquid as a standard trading platform.

Hougan also emphasized that HYPE’s recent performance does not change his view that the token remains undervalued. He noted that HYPE is up by 77% this year, yet he believes the market still hasn’t fully credited Hyperliquid’s long-term trajectory. 

In his view, Hyperliquid’s real opportunity is not just to grow as a rapidly expanding crypto perpetual exchange, but to evolve into a broader trading super app spanning stocks, pre-IPO assets, commodities, prediction markets, and crypto assets.

The bullish remarks come as interest in HYPE gained another boost from ETF activity. Along with Bitwise’s launch of a Hyperliquid ETF tied to HYPE, 21Shares introduced its own HYPE ETF earlier in the month. 

Following those launches, HYPE surged—recording massive gains of nearly 20% in the past week alone. At the time of writing, HYPE was trading just above the key $48 mark, only 18% below all-time high levels of $59 reached last year. 

Featured image created with OpenArt, chart from TradingView.com