Bitwise 10 Crypto Index ETF Adds Hyperliquid (HYPE), Drops DOT and AVAX

Bitwise has updated the composition of its 10 Crypto Index ETF, adding Hyperliquid (HYPE) and Stellar (XLM) to the basket while removing Polkadot (DOT) and Avalanche (AVAX) as part of its May 2026 rebalance.

What Changed in the Bitwise 10 Crypto Index ETF Rebalance

The changes were confirmed in Bitwise’s May 2026 rebalance results, which showed Hyperliquid entering the index at a 0.83% weight. The Bitwise 10 Large Cap Crypto Index tracks the 10 largest crypto assets by market capitalization, screened for technical, custody, liquidity, and regulatory risks.

Bitwise’s ETF (ticker: BITW) is listed on NYSE Arca and seeks to track the index by holding the same 10 assets weighted by market cap. The fund is not registered under the Investment Company Act of 1940 and rebalances monthly. For related coverage, see Bitwise Defends Michael Saylor's Bitcoin Strategy Amid MSCI Proposal.

By July 7, 2026, HYPE’s weight in the live BITW holdings had drifted upward to 0.93%, with 78,927 shares held, reflecting relative price appreciation since the May rebalance. DOT and AVAX were no longer present in the current 10-name basket. This is notable given that Bitwise had previously announced a standalone Avalanche ETF, signaling that AVAX’s removal from the index fund does not necessarily reflect Bitwise’s broader view of the asset.

Why Hyperliquid’s Addition and DOT and AVAX Removals Matter

Hyperliquid, a decentralized perpetual futures exchange that operates its own Layer 1 blockchain, has grown rapidly in market capitalization. At the time of the research snapshot, HYPE carried a market cap of approximately $15.09 billion, placing it firmly within the range of assets eligible for a large-cap crypto index.

The protocol also holds roughly $5.48 billion in total value locked, underscoring its scale as a derivatives-focused platform. Its inclusion in BITW exposes passive index investors to a newer category of crypto asset: infrastructure for decentralized trading.

The removal of DOT and AVAX reflects a straightforward market-cap ranking shift rather than a qualitative judgment on either project. Bitwise’s methodology is rules-based; assets that fall outside the top 10 by eligible market cap are replaced by those that have entered it. Both Polkadot and Avalanche remain active networks with significant ecosystems.

What This Means for ETF Investors

For holders of BITW, the rebalance is automatic. The fund adjusts its holdings to match the updated index, so no action is required. The change does, however, shift the portfolio’s exposure profile, replacing two established Layer 1 platforms with a derivatives-focused protocol and a payments-oriented network.

ETF index inclusion can increase visibility and passive capital flows into an asset, but it is not a price signal. Inclusion reflects past market-cap growth, not a forecast of future performance. Similarly, removal from the index does not indicate a fundamental problem with DOT or AVAX.

The rebalance comes during a period of broad market caution, with the crypto Fear and Greed Index reading 22, in “Extreme Fear” territory. In that context, the composition change is a mechanical adjustment driven by relative market-cap shifts rather than a sentiment-driven trade.

Bitwise’s relationship with SEC oversight remains an ongoing storyline. The firm has previously navigated regulatory pauses on its ETF conversion process, and the SEC halted an earlier Bitwise ETF conversion after initial approval. These episodes highlight the evolving regulatory landscape for crypto index products.

The next scheduled rebalance of the Bitwise 10 Large Cap Crypto Index is expected in June 2026, following the fund’s monthly review cycle.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.