Bitwise Crypto Index ETF Cuts DOT and AVAX, Adds Hyperliquid

Bitwise has reshuffled its flagship Bitwise 10 Crypto Index ETF (BITW), and the biggest headline from the rebalance is the arrival of Hyperliquid’s HYPE token — a move that signals just how dramatically the decentralized exchange sector has muscled its way into institutional allocation conversations.

Key takeaways

• Hyperliquid (HYPE) and Stellar (XLM) have been added to the Bitwise 10 Crypto Index ETF (BITW) in the latest rebalance.
• Polkadot (DOT) and Avalanche (AVAX) were removed from the fund.
• HYPE posted $1.34 trillion in trading volume and $320 million in revenue in the first half of 2026, with a 165% year-to-date gain.
• Following the rebalance, HYPE carries an approximate 0.95% weighting in the fund.
• The reconstitution was driven by constituent weight optimization and market capitalization rankings.

Bitwise 10 Crypto Index ETF Updates Holdings

The BITW rebalance, announced July 9, 2026, reflects a clear-eyed read on where market capitalization and momentum have shifted across the crypto asset class. Two tokens are in, two are out — and the choices tell a story about which projects have held institutional relevance and which have slipped in the rankings.

Alongside HYPE, Stellar (XLM) earned a spot in the index. On the other side of the ledger, Polkadot (DOT) and Avalanche (AVAX) were cut. Both had been considered blue-chip layer-1 assets for much of the previous bull cycle, but the reconstitution process — built around constituent weight optimization and market capitalization rankings — determined they no longer meet the threshold for inclusion.

For DOT and AVAX holders, the removal from one of crypto’s most prominent index products is a meaningful signal. Index inclusion tends to drive passive demand; exclusion can quietly work the other way.

Performance Metrics Justifying Hyperliquid’s Inclusion

HYPE’s entry into the Bitwise crypto index ETF was not a speculative bet — it was backed by one of the more striking performance records in the space during the first half of 2026. The numbers make the case straightforwardly.

Hyperliquid recorded $1.34 trillion in trading volume in the first six months of 2026 alone. Over the same period, the protocol generated $320 million in revenue. And the token itself delivered a 165% year-to-date gain — a figure that would stand out in any asset class, let alone a market known for volatility.

Post-rebalance, HYPE holds an approximate 0.95% weighting in the fund. That number may look modest, but within a tightly constructed index of ten major crypto assets, every basis point reflects a deliberate allocation decision. Getting into the basket at all is the more significant milestone.

What makes the HYPE inclusion analytically interesting is what it says about how the BITW methodology is evolving. Hyperliquid is a decentralized perpetuals exchange — a DeFi-native infrastructure play rather than a layer-1 general-purpose blockchain. Its entry alongside established names suggests the index is increasingly willing to weight real economic activity, revenue generation, and on-chain volume as markers of legitimacy, not just network age or developer ecosystem size.

ETF Rebalancing Criteria and Market Impact

The BITW reconstitution follows a rules-based process anchored in constituent weight optimization and market capitalization rankings. That framework keeps the methodology transparent, but it also means the fund’s composition will keep shifting as the crypto market matures and relative rankings change.

The broader implication is worth sitting with. Index rebalances in traditional finance are routine; in crypto, they carry extra weight because the asset class still lacks the deep passive investment infrastructure of equities. When a major index fund like BITW moves assets in or out, it influences how a subset of institutional and retail capital flows through the space — and it sends a signal to the wider market about which tokens are being treated as durable allocations versus which have faded from the conversation.

The exit of Polkadot and Avalanche — both former top-ten mainstays — underscores that no position in a crypto index is permanent. The same competitive pressure that vaulted HYPE into institutional view can just as easily work in reverse.

FAQ

Which assets were added and removed in the latest Bitwise 10 Crypto Index ETF rebalance?

Hyperliquid (HYPE) and Stellar (XLM) were added to the Bitwise 10 Crypto Index ETF (BITW), while Polkadot (DOT) and Avalanche (AVAX) were removed.

Why was Hyperliquid (HYPE) added to the Bitwise 10 Crypto Index ETF?

HYPE was added based on its strong performance in the first half of 2026, which included $1.34 trillion in trading volume, $320 million in revenue, and a 165% year-to-date price gain.

What criteria were used to rebalance the Bitwise 10 Crypto Index ETF?

The rebalance was conducted using constituent weight optimization and market capitalization rankings as the primary criteria for index reconstitution.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.