Crypto asset manager Bitwise has called Hyperliquid’s native token HYPE one of the most undervalued assets in the digital currency market, even as the token has delivered exceptional returns this year. Matt Hougan, Bitwise’s investment chief, argues that the market is fundamentally mispricing HYPE because it views Hyperliquid solely as a crypto perpetual futures exchange rather than recognizing it as a broader financial super-app.
Hougan made his bullish case in a note published Tuesday, highlighting that HYPE has emerged as the best-performing large-cap cryptocurrency asset of 2026 with a 77% year-to-date gain. Despite this outperformance, Hougan maintains that investors are still underestimating both the platform’s impact and the token’s intrinsic value. His comments come as Bitwise launched a dedicated HYPE exchange-traded fund on the New York Stock Exchange on Friday, joining 21Shares in offering institutional exposure to the token.
The core of Bitwise’s investment thesis centers on Hyperliquid’s evolution beyond traditional crypto trading. While the platform’s primary focus remains perpetual futures trading in the crypto space, Hyperliquid has expanded to include stock trading, prediction markets, and exposure to other asset classes. According to Hougan, nearly half of the platform’s trading volume now comes from non-crypto assets, a metric that fundamentally changes how the token should be valued.
“Hyperliquid is one of the most important crypto projects to emerge in years,” Hougan stated, emphasizing that the platform represents a new category of financial infrastructure. This positioning aligns with broader industry trends, as Hyperliquid continues to attract significant trading activity and institutional interest from major market participants.
The super-app narrative has gained traction in regulatory circles as well. SEC Chair Paul Atkins has publicly endorsed the concept of super-apps that can custody and trade multiple asset classes under a single regulatory license. Hougan argues that Hyperliquid has effectively become the super-app that Atkins envisioned, operating as a non-SEC regulated platform offering investors exposure to diverse asset categories.
Other major cryptocurrency exchanges have pursued similar diversification strategies. Coinbase, Kraken, and Gemini have all worked to expand beyond pure crypto trading into prediction markets and tokenized equities to strengthen their business models and revenue streams. This industry-wide shift reflects changing market dynamics and regulatory opportunities in the digital assets space.
However, Hougan acknowledged that Hyperliquid still faces significant hurdles before reaching its full potential. Most critically, the platform remains unavailable in the United States and would need to navigate complex regulatory integration to serve American investors. This geographic limitation represents a substantial constraint on the token’s near-term upside, particularly given the size and sophistication of the US market.
The HYPE ETF launches have generated mixed results so far. While Bitwise’s offering launched on the NYSE on Friday, 21Shares’ earlier HYPE fund attracted only $1.2 million in net inflows during its debut week, a relatively modest figure compared to other altcoin ETF launches. This tepid institutional response suggests that despite Hougan’s bullish thesis, broader market adoption of HYPE exposure through traditional investment vehicles remains limited.
See also: Bitcoin Doesn’t Need Fresh Narrative to Reclaim $100K, Says Analyst
BitMEX co-founder Arthur Hayes has also expressed optimism about HYPE’s prospects. In a March blog post, Hayes suggested that the token could continue rallying if Hyperliquid successfully captures additional volume from centralized exchanges and continues expanding its product offerings. His analysis echoes Bitwise’s core argument that the platform’s growth trajectory remains in early stages.
The valuation debate around HYPE reflects a broader challenge in cryptocurrency markets, where market participants often struggle to price tokens that operate across multiple asset classes and regulatory jurisdictions. Hougan’s argument that HYPE trades at a discount to its fundamental value depends on Hyperliquid’s ability to execute on its super-app vision while navigating regulatory frameworks across different markets.
As the crypto industry continues evolving toward multi-asset platforms, the performance of tokens like HYPE will likely influence how investors and regulators think about digital asset infrastructure. Whether Bitwise’s mispricing thesis proves correct will depend on Hyperliquid’s execution, regulatory progress, and the broader market’s willingness to value crypto platforms based on their total addressable market rather than their crypto-native trading volumes.
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