Hyperliquid’s HYPE joins Bitwise’s flagship crypto index as Polkadot exits

Bitwise Asset Management has added Hyperliquid’s HYPE token to its Bitwise 10 Crypto Index ETF (BITW), the firm’s flagship large-cap fund, in a monthly reconstitution that also saw Polkadot’s DOT and Avalanche’s AVAX dropped from the basket. Holdings data dated 7 July 2026 show HYPE entering the fund with a weighting close to 1%, alongside Stellar’s XLM, according to crypto.news.

The reshuffle matters less for its size than for what it signals about institutional gatekeeping of digital assets. BITW, which Bitwise describes as the world’s first and largest crypto index fund, tracks the Bitwise 10 Large Cap Crypto Index and rebalances monthly, screening constituents by market capitalisation and liquidity. Inclusion effectively certifies a token as having met thresholds that regulated fund managers consider investable within a diversified wrapper.

A rapid ascent through trading volume

Hyperliquid’s qualification follows a period of unusually strong on-chain activity. The platform reportedly recorded $1.34 trillion in trading volume and $320 million in revenue over the first half of 2026, according to crypto.news. HYPE itself was reported to have gained 165% year-to-date ahead of its inclusion in BITW.

That growth has already been reflected in exchange-traded products tracking HYPE directly. Crypto.news reported that HYPE-linked ETFs crossed $100 million in cumulative net inflows as traditional finance investors increased their exposure to the token, before a separate Bitwise HYPE product recorded its first daily outflow after 16 consecutive days of inflows.

DOT and AVAX lose standing

The removal of Polkadot and Avalanche from BITW is arguably the more consequential half of the reconstitution for the broader altcoin market. Both tokens have long featured among the sector’s established large-cap layer-one projects, and their exit from a benchmark index fund reflects Bitwise’s screening methodology reprioritising market capitalisation and liquidity rankings over legacy standing.

For allocators using BITW as a proxy for broad crypto exposure, the swap means less relative weighting toward Polkadot and Avalanche’s ecosystems and greater exposure to Hyperliquid’s derivatives-focused trading infrastructure and Stellar’s payments network. Bitwise’s holdings remain subject to change at each monthly review, meaning any of the current constituents could be displaced again if rankings shift.

Modest weighting, symbolic significance

Despite the attention, HYPE’s roughly 1% weighting in BITW remains small relative to Bitcoin and Ethereum, which continue to dominate the index. The practical portfolio effect for BITW holders is therefore limited in the near term.

Nonetheless, the inclusion gives Hyperliquid a presence inside a regulated fund structure that institutional investors already use for diversified crypto exposure, a step that typically follows sustained trading volume, market capitalisation growth and index-level due diligence rather than short-term price momentum alone. Whether HYPE retains its place will depend on Bitwise’s next reconstitution, due within the coming month, and on whether the token’s recent inflows into related exchange-traded products prove durable following the reported first outflow day.

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