The crypto market started the week on shaky footing, with Bitcoin sliding roughly 6% over the past seven days. Yet amid the broader pullback one altcoin caught traders’ attention: Hyperliquid’s native token HYPE.
Bitwise was a key catalyst. In a post on X, the asset manager said it will allocate 10% of the management fees from its newly launched Bitwise Hyperliquid ETF (ticker: BHYP) to holding HYPE on its balance sheet. Bitwise also positioned BHYP as more than a spot product, saying the fund gives investors indirect exposure to HYPE plus access to staking rewards — tying the ETF’s economics to the token’s broader value proposition rather than pure spot exposure.
The announcement translated into tangible price action. HYPE climbed during Monday’s session and, at the time of writing, was trading around $46 — hovering near the $50 mark and roughly 20% below last year’s all-time high near $59 if momentum continues.
Meanwhile, traditional crypto-focused equities painted a different picture. Shares of Galaxy Digital (ticker: GLXY) fell almost 6% on Monday, closing near $27.87. That drop came the same day Galaxy announced a major regulatory win: the New York State Department of Financial Services granted GalaxyOne Prime NY both a BitLicense and a Money Transmission License. Galaxy said these approvals will enable the firm to serve New York-based institutional clients more directly.
Founder and CEO Mike Novogratz framed the milestone as a sign that institutional capital is moving into digital assets in a meaningful way. “New York is home to the deepest pool of institutional capital in the country,” he said, adding that digital assets are no longer “sitting at the edge” of institutional allocations and that Galaxy was built to meet that demand.
The contrasting moves — HYPE’s pop on a Bitwise-linked ETF announcement and Galaxy’s share weakness despite regulatory clearance — underscore how market sentiment can diverge sharply across tokens, funds and listed crypto firms even within the same trading session.
Image credit: artwork created with OpenArt; chart from TradingView.com.
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