Bitwise has rebalanced its flagship crypto index ETF, adding Hyperliquid and Stellar to the fund while removing Polkadot and Avalanche from its holdings.
Bitwise has rebalanced its flagship crypto index ETF, adding Hyperliquid and Stellar to the fund while removing Polkadot and Avalanche from its holdings.
WHAT TO KNOW
- Added: Hyperliquid (HYPE) and Stellar (XLM) now appear in the Bitwise 10 Crypto Index Fund.
- Removed: Polkadot (DOT) and Avalanche (AVAX) have been dropped from the fund’s portfolio.
What changed in Bitwise’s latest crypto index ETF rebalance
The changes were applied as part of Bitwise’s periodic index rebalance process for its Bitwise 10 Crypto Index Fund (BITW), which tracks the ten largest crypto assets by a rules-based methodology. Index rebalances adjust fund holdings to reflect shifts in market capitalization, liquidity, and eligibility criteria. For related coverage, see Tennessee Crypto ATM Ban Stays in Force After Court Ruling.
Hyperliquid, a decentralized perpetuals exchange that has seen rapid growth, and Stellar, a long-established payments-focused blockchain, earned spots in the updated lineup. Both replaced Polkadot and Avalanche, two layer-1 networks that had previously qualified for the index. For related coverage, see SUI Crypto May Lead Next Altcoin Rally if $1 Breaks: Why It Matters.
The rebalance was reported following a strong rally in HYPE’s price, which helped push the token’s market capitalization above the threshold for index inclusion. Stellar’s addition reflects its continued presence among the largest crypto assets by market value, a space where it has recently traded sideways but maintained its ranking.
Why Hyperliquid and Stellar replaced Polkadot and Avalanche
Index products like BITW follow defined methodologies that mechanically determine which assets qualify based on factors such as market capitalization and trading volume. When an asset’s ranking drops below the cutoff, it exits the fund regardless of its underlying technology or ecosystem activity. For related coverage, see Wyden Backs Crypto Industry on BRCA During Clarity Act Debate.
Polkadot and Avalanche both experienced relative declines in their market positioning compared to rising competitors. Their removal does not necessarily reflect a negative outlook on either project, but rather the index’s rules-based response to shifting market rankings.
Hyperliquid’s inclusion is notable because it represents a DeFi-native protocol entering a regulated index fund product. The protocol has grown rapidly since launching its token, drawing attention from institutional allocators who track altcoin positioning through index exposure.
What the Bitwise ETF rebalance means for crypto investors
For passive crypto investors who use BITW as their primary exposure vehicle, the rebalance automatically shifts their altcoin allocation. Holders now have exposure to Hyperliquid and Stellar instead of Polkadot and Avalanche, without needing to execute any trades.
Index inclusion can also affect market perception. Assets added to tracked funds tend to receive increased visibility among institutional and retail investors, while removed assets may see reduced attention. This dynamic is well understood in traditional equity markets and is increasingly relevant in crypto’s evolving regulatory landscape.
The swap marks a meaningful shift in the altcoin composition of one of the longest-running crypto index funds in the United States, signaling that newer DeFi protocols are displacing earlier-generation layer-1 networks in market capitalization rankings.
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.