Bitwise Files Second Amendment for Hyperliquid ETF Trading Partners

Bitwise just dropped another amendment. The asset manager filed paperwork Thursday to add Wintermute and Flowdesk as official trading counterparties for its Hyperliquid ETF, marking the second time the company has tweaked the fund’s structure since launch preparations began.

The move brings two heavy hitters into Bitwise’s crypto ETF operation. Wintermute, which has pushed through over $1 trillion in trading volume since it started, joins alongside Flowdesk, a liquidity provider that’s been making waves in digital asset markets. Both firms specialize in the kind of high-frequency trading that keeps ETF prices tight and spreads narrow. Bitwise CEO Hunter Horsley said the partnerships are “pivotal” for the fund’s success, though he didn’t spell out exactly how much trading volume the new partners might handle. The timing isn’t random either – crypto volatility has been brutal lately, with Bitcoin bouncing around $28,000 and institutional investors getting skittish about market infrastructure.

Regulatory Timeline Stays Murky

Nobody knows when approval comes.

The SEC hasn’t commented on Bitwise’s latest filing, leaving the company and potential investors in limbo about next steps. Regulatory review timelines for crypto ETFs have been all over the map this year, with some approvals taking months while others get fast-tracked. Bitwise filed the amendment on April 10, but sources close to the process say there’s no clear indication when regulators might weigh in. The company has been in ongoing talks with the SEC to nail down compliance requirements, but those discussions remain private.

Industry insiders are watching closely because Bitwise’s approach could set precedent for other crypto ETF launches. The firm reported increased institutional interest since early April, with several large investors asking about exposure to the Hyperliquid ecosystem through regulated vehicles. But without SEC blessing, that interest can’t translate into actual investments.

Market Infrastructure Push

Bitwise’s strategy focuses on building rock-solid trading infrastructure before the ETF goes live. The Wintermute and Flowdesk additions are part of a broader push to create multiple liquidity sources, reducing the fund’s dependence on any single trading partner. Market makers have been crucial for other crypto ETFs – the successful Bitcoin spot ETFs launched earlier this year all relied on established trading relationships to maintain tight bid-ask spreads.

Flowdesk brings particular expertise in algorithmic trading and risk management, areas that become critical when crypto prices swing wildly. The firm has been recognized for rapid growth in digital asset markets, though specific trading volumes aren’t publicly disclosed. Wintermute’s track record speaks for itself – the market maker has been active across dozens of crypto exchanges and handled some of the largest institutional trades in recent years. Market participants tracking Bitwise Sets $BHYP Ticker and 0.67% will find additional context here.

The amendment filing came just one day after Bitwise Europe launched a separate Hyperliquid staking product on Deutsche Börse Xetra, showing the company’s global ambitions for the ecosystem. That European product has already started trading, giving investors outside the U.S. early access to Hyperliquid exposure while American investors wait for SEC approval.

Bitwise hasn’t disclosed fee structures or minimum investment amounts for the ETF yet. The company is probably waiting for regulatory clarity before finalizing those details, since SEC feedback could force changes to the fund’s operational structure.

Current market conditions make the timing tricky. Crypto assets have been choppy since the start of 2026, with institutional flows turning negative in recent weeks. Some analysts think Bitwise is being smart by building infrastructure now, positioning the ETF to launch when market sentiment improves. Others worry that prolonged regulatory delays could kill momentum entirely.

The Hyperliquid ecosystem itself has been growing despite broader market weakness. The decentralized exchange has seen steady volume growth and new project launches, giving Bitwise’s ETF a potentially strong underlying asset base. But DEX tokens remain highly volatile, and it’s unclear how traditional ETF investors will react to that risk profile.

Hunter Horsley emphasized the firm’s commitment to “the most efficient and reliable trading experience” in Thursday’s statement. Whether Wintermute and Flowdesk can deliver on that promise remains to be seen. Both firms have solid reputations, but crypto ETF trading presents unique challenges that haven’t been fully tested at scale. This echoes themes explored in Bitcoin Security Flaws Spark XRP Trading, underscoring the shifting landscape.

The SEC’s next move could come any day or take months. Bitwise is preparing for multiple scenarios, including potential requests for additional documentation or operational changes. The company’s proactive approach with this second amendment suggests they’re trying to address regulatory concerns before they become formal objections.

Institutional interest keeps building despite the uncertainty. Bitwise reported fielding calls from pension funds and endowments about crypto exposure through regulated vehicles.