Bitwise Hyperliquid ETF 10-Q

Item 1. Financial Statements (Unaudited) . Bitwise Hyperliquid ETF Statements of Assets and Liabilities (Amounts in thousands, except Share and per-share amounts) June 30, 2026 December 31, 2025* (unaudited) Assets Investment in Hyperliquid, at fair value (cost $ 118,209 at June 30, 2026) $ 128,260 2 $ — Cash — 200 Receivable for Staking Rewards 5 — Total assets 128,265 200 Liabilities Sponsor Fee payable 19 — Payable for Hyperliquid purchased 4 — Staking Fee payable 1 — Total liabilities 24 — Net Assets $ 128,241 $ 200 Shares issued and outstanding, no par value ( unlimited amount authorized) 3,490,000 8 1 Principal Market NAV per Share $ 36.75 $ 25.00 1 * As of December 31, 2025, the Trust held initial seed capital amounting to $ 200 in cash. 1 Prior to commencement of operations on May 14, 2026, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, redeemed the initial seed capital of 8 shares for $ 200 . 2 Amount includes $ 89,810 staked Hyperliquid as of June 30, 2026. The accompanying notes are an integral part of the Financial Statements. 1 Bitwise Hyperliquid ETF Schedule of Investment (Amounts in thousands, except quantity of Hyperliquid and percentages) June 30, 2026* (unaudited) Quantity Percentage of of Hyperliquid Cost Fair Value Net Assets Investment in Hyperliquid^ 1,959,065.2803 $ 118,209 $ 128,260 1 100.01 % Total investment $ 118,209 128,260 100.01 % Liabilities in excess of other assets ( 19 ) ( 0.01 )% Net Assets $ 128,241 100.00 % * No comparative period information yet available as the Trust commenced operations on May 14, 2026. ^ Crypto assets do not have a singular country or geographic region; therefore country information is omitted. 1 Amount includes $ 89,810 staked Hyperliquid as of June 30, 2026. The accompanying notes are an integral part of the Financial Statements. 2 Bitwise Hyperliquid ETF S tatement of Operations (Amounts in thousands) For the period May 14, 2026 (commencement of operations) through June 30, 2026* (unaudited) Investment income Staking Rewards $ 156 Expenses Sponsor Fee 37 Staking Fee 39 Total expenses 76 Less: waivers and reimbursements ( 18 ) Net expenses 58 Net investment income 98 Net realized and change in unrealized gain (loss) on investments Net realized gain (loss) from Hyperliquid transferred for staking activities 12 Net realized gain (loss) from investment in Hyperliquid sold for redemptions ( 1,055 ) Net change in unrealized appreciation (depreciation) from investment in Hyperliquid 10,051 Net realized and unrealized gain (loss) 9,008 Net increase (decrease) in net assets resulting from operations $ 9,106 * No comparative period information yet available as the Trust commenced operations on May 14, 2026. The accompanying notes are an integral part of the Financial Statements. 3 Bitwise Hyperliquid ETF Statement of Changes in Net Assets (Amounts in thousands, except Shares issued and redeemed) For the period May 14, 2026 (commencement of operations) through June 30, 2026* (unaudited) Increase (decrease) in net assets resulting from operations Net investment gain (loss) $ 98 Net realized gain (loss) ( 1,043 ) Net change in unrealized appreciation (depreciation) 10,051 Net increase (decrease) in net assets resulting from operations 9,106 Increase (decrease) in net assets from capital share transactions Creations for Shares issued 124,873 Redemptions for Shares redeemed ( 5,738 ) Net increase (decrease) in net assets resulting from capital share transactions 119,135 Total increase (decrease) in net assets from operations and capital share transactions 128,241 Net assets Beginning of period — 1 End of period $ 128,241 Shares issued and redeemed Shares issued 3,660,000 Shares redeemed ( 170,008 ) Net increase (decrease) in Shares issued and outstanding 3,489,992 * No comparative period information yet available as the Trust commenced operations on May 14, 2026. 1 Prior to the commencement of operations on May 14, 2026, on November 24, 2025, BAM, the parent company of the Sponsor, purchased 8 Shares at a per-share price of $ 25.00 for $ 200.00 in a transaction exempt from registration under Section 4(a)(2) of the 1933 Act (the “Seed Shares”). On May 14, 2026, BAM redeemed the entirety of its 8 Seed Shares for $ 200 and Bitwise Investment Manager, LLC (“BIM”), an affiliate of the Sponsor, purchased the initial 40,000 Shares of the Trust (the “Seed Baskets”) for $ 1,000,000 , at a per-Share price of $ 25.00 . The accompanying notes are an integral part of the Financial Statements. 4 Bitwise Hyperliquid ETF Statement of Cash Flows (Amounts in thousands) For the period May 14, 2026 (commencement of operations) through June 30, 2026* (unaudited) Cash flows from operating activities Net increase (decrease) in net assets resulting from operations $ 9,106 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Purchases of Hyperliquid ( 115,917 ) Hyperliquid received for Staking Rewards ( 118 ) Proceeds from Hyperliquid sold 5,738 Net realized (gain) loss from Hyperliquid transferred for staking activities ( 12 ) Net realized (gain) loss from investment in Hyperliquid sold for redemptions 1,055 Net change in unrealized (appreciation) depreciation from investment in Hyperliquid ( 10,051 ) Changes in operating assets and liabilities: (Increase) decrease in receivable for Staking Rewards ( 5 ) Increase (decrease) in Sponsor Fee payable 19 Increase (decrease) in Staking Fee payable 1 Net cash provided by (used in) operating activities ( 110,184 ) Cash flows from financing activities Creations for Shares issued 115,922 Redemptions for Shares redeemed ( 5,738 ) Net cash provided by (used in) financing activities 110,184 Net increase (decrease) in cash — Cash, beginning of period (1) — Cash, end of period $ — Supplemental disclosure of noncash financing activities In-Kind Creations of Hyperliquid $ 8,951 * No comparative period information yet available as the Trust commenced operations on May 14, 2026. 1 On November 24, 2025, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, purchased 8 Shares at a per-Share price of $ 25.00 for $ 200.00 in a transaction exempt from registration under Section 4(a)(2) of the 1933 Act (the "Seed Shares"). The accompanying notes are an integral part of the Financial Statements. 5 Bitwise Hyperliquid ETF Notes To Financial Statements June 30, 2026 (Unaudited) 1. Organization Bitwise Hyperliquid ETF (the “Trust”) is an investment trust organized on September 12, 2025 under Delaware law pursuant to a Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Trust’s primary investment objective is to seek to provide exposure to the value of Hyperliquid held by the Trust, less the expenses of the Trust’s operations, generally just the Sponsor Fee. The Trust’s secondary investment objective is to seek to derive additional Hyperliquid through staking. In seeking to achieve its primary investment objective, the Trust’s sole asset is expected to be Hyperliquid. The Trust is an Exchange Traded Product (“ETP”) that issues common shares of beneficial interest (“Shares”) that are listed on the NYSE Arca, Inc. (the “Exchange”) under the ticker symbol “BHYP,” providing investors with an efficient means to obtain market exposure to the price of Hyperliquid. Bitwise Investment Advisers, LLC (the "Sponsor"), a wholly-owned subsidiary of Bitwise Asset Management, Inc. ("BAM") serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the U.S. and the listing of Shares on the Exchange. The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials regarding the Shares, and will operate the marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises managerial control of the Trust as permitted under the Trust Agreement. The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor’s unified management fee. Delaware Trust Company acts as the trustee of the Trust for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust Act (“DSTA”). The Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the DSTA that the Trust have at least one trustee with a principal place of business in the State of Delaware. The statement of assets and liabilities and schedule of investment as of June 30, 2026, and the statements of operations, cash flows, and changes in net assets for the period from May 14, 2026 (commencement of operations) through June 30, 2026, have been prepared on behalf of the Trust and are unaudited. In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations for the period from May 14, 2026 (commencement of operations) through June 30, 2026, and for all interim periods presented have been made. In addition, interim period results are not necessarily indicative of results for a full-year period. Prior to the commencement of operations on May 14, 2026, on November 24, 2025, BAM, the parent company of the Sponsor, purchased 8 Shares at a per-Share price of $ 25.00 for $ 200.00 in a transaction exempt from registration under Section 4(a)(2) of the 1933 Act (the “Seed Shares”). On May 14, 2026, BAM redeemed the entirety of its 8 Seed Shares for $ 200 and Bitwise Investment Manager, LLC (“BIM”), an affiliate of the Sponsor, purchased the initial 40,000 Shares of the Trust (the “Seed Baskets”) for $ 1,000,000 , at a per-Share price of $ 25.00 . BIM acted as a statutory underwriter in connection with the initial purchase of the Seed Baskets. On May 15, 2026, BIM sold all of its 40,000 Shares of the Trust for cash. 2. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies. Use of Estimates The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of this financial statement. Actual results could differ from those estimates. 6 Cash Cash includes non-interest bearing non-restricted cash with one institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits. Investment Transactions and Revenue Recognition The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investment in Hyperliquid. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor Fee in Hyperliquid. Staked Hyperliquid and Staking Rewards Hyperliquid held by the Trust is bonded through Attestant, Ltd., an affiliate of the Sponsor (the "Staking Agent"), to the Hyperliquid network ("staked") for purposes of validating a node or multiple nodes on the network. Hyperliquid staked to the Hyperliquid Network receives rewards in the form of Hyperliquid ("Staking Rewards"). Staking Rewards are variable and will accrue to the benefit of the Trust, net of delegator fees. Hyperliquid Staking Rewards are measured at fair value on the date they are accrued. Under current Hyperliquid Network protocols, Hyperliquid staked on the Hyperliquid Network is subject to a one-day lockup during which it cannot be unstaked. Additionally, after the one-day lockup period, any unstaked Hyperliquid enters a seven-day unstaking queue before it becomes freely transferable. Under normal circumstances, the Sponsor anticipates that it will engage in staking with respect to a portion of the Trust’s Hyperliquid, except for Hyperliquid held in the “Liquidity Reserve,” which is the portion of the Trust’s Hyperliquid holdings that are unstaked and are freely transferable and available to meet redemptions. Because the Trust anticipates staking a substantial portion of its Hyperliquid holdings, the Trust has adopted liquidity risk policies and procedures to monitor and manage the Liquidity Reserve. These policies and procedures are reasonably designed to ensure that the Trust is able to satisfy redemptions without incurring the risk of significant dilution of the remaining Shareholders’ interest in the Trust. Staking Rewards are earned by the Trust in Hyperliquid, which is a non-cash consideration, as the validator with whom the Trust has staked its Hyperliquid validates transactions on the Hyperliquid Network. The Trust has concluded that the validator is the principal to the validation activities giving rise to the Staking Rewards and, therefore, the Trust recognizes only the net amount (i.e., net of the Staking Rewards retained by the validator) of Hyperliquid to which it is entitled for staking its Hyperliquid with the validator. Investment Valuation - Principal Market Net Asset Value ("NAV") To determine which market is the Trust's principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust's net asset value in accordance with U.S. GAAP ("Principal Market NAV" and "Principal Market NAV per Share"), the Trust follows ASC Topic 820-10, Fair Value Measurement, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for Hyperliquid in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that Hyperliquid is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust only receives Hyperliquid in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets (“Trading Platform Markets”), each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”). In determining which of the eligible Digital Asset Markets is the Trust's principal market, the Trust reviews these criteria in the following order: First, the Trust reviews a list of Digital Asset Markets that are U.S. accessible, have historically provided publicly available data, and are exchanges that Bitwise normally transacts on. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable crypto asset exchanges selected in their sole discretion. 7 Second, Lukka, Inc. sorts these Digital Asset Markets from high to low by market-based volume and level of activity of Hyperliquid traded on each Digital Asset Market. For the period from May 14, 2026 (commencement of operations) through June 30, 2026, this sort was performed for Digital Asset Markets for the period mid-May through mid-June 2026. Third, Lukka, Inc. then reviews pricing fluctuations and the degree of variances in price on each Digital Asset Market during the 60 minutes prior to 4:00 p.m. EST for Hyperliquid to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market. Fourth, Lukka, Inc. then selects a Digital Asset Market as its principal market based on the highest market-based volume level of activity and price stability in comparison to the other Digital Asset Markets on the list. As of June 30, 2026, Lukka, Inc. included Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Bybit, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex as its primary Exchange Markets in consideration. At June 30, 2026, the principal market and the principal market price for Hyperliquid, which is composed of the majority of the Trust’s assets as of June 30, 2026, was Coinbase with a price of $ 65.47 . The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust's determination of its principal market. The cost basis of the Hyperliquid received by the Trust in connection with a creation order is recorded by the Trust at the fair value of Hyperliquid at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Various inputs are used to determine the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Unobservable inputs, including the Trust's assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date. The following summarizes the Trust’s assets accounted for at fair value at June 30, 2026 (amounts in thousands)*: Level 1 Level 2 Level 3 Total Assets Investments in Hyperliquid, at fair value $ 128,260 $ — $ — $ 128,260 * No comparative period information yet available as the Trust commenced operations on May 14, 2026. Calculation of Net Asset Value (NAV) and NAV Per-Share 8 On each business day, as soon as practicable after 4:00 p.m. EST, the NAV of the Trust is obtained by subtracting all accrued fees and other liabilities of the Trust from the fair value of the Hyperliquid and other assets held by the Trust. The Bank of New York Mellon (the “Administrator”) computes the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding on the date the computation is made. Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself is not subject to U.S. federal income tax. Instead, the Trust’s income and expenses “flow through” to the shareholders, and the Administrator reports the Trust’s income, gains, losses, and deductions to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust, and does not believe that there are any uncertain tax positions that require recognition of a tax liability as of June 30, 2026. The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of June 30, 2026, the Trust has determined that no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of June 30, 2026, all tax years since inception remain open for examination. There were no examinations in progress at period end. Organizational and offering costs The costs of the Trust’s organization and the initial offering of the Shares will be borne directly by the Sponsor. The Trust will not be obligated to reimburse the Sponsor. 3. Fair Value of Hyperliquid As of June 30, 2026*, the Trust held a net closing balance of 1,959,065.2803 Hyperliquid with a total market value of $ 127,529,273 based on the CF Hyperliquid - Dollar US Settlement Price - New York Variant ("HYPEUSD_NY") Price of $ 65.10 used to determine the Trust's NAV. The total market value of the Trust's Hyperliquid held was $ 128,260,004 based on the price of Hyperliquid (Lukka Prime Rate) in the principal market (Coinbase) of $ 65.47 , used to determine the Trust's Principal Market NAV. The following represents the changes in quantity of Hyperliquid and the respective fair value for the period from May 14, 2026 (commencement of operations) through June 30, 2026*: Quantity of Hyperliquid Fair Value (amounts in thousands) Beginning balance as of May 14, 2026 (commencement of operations) 0.0000 $ 0 Purchases 1,912,369.7673 115,921 In-Kind Creations 140,239.8386 8,951 Hyperliquid received from Staking Rewards 1 1,829.7912 118 Sales for the redemption of Shares ( 95,374.1168 ) ( 5,738 ) Net realized gain (loss) from Hyperliquid transferred for staking activities — 12 Net realized gain (loss) from investment in Hyperliquid sold for redemptions — ( 1,055 ) Net change in unrealized appreciation (depreciation) from investment in Hyperliquid — 10,051 Ending balance as of June 30, 2026 1,959,065.2803 128,260 * No comparative period information yet available as the Trust commenced operations on May 14, 2026. 1 Fair value of Hyperliquid received from Staking Rewards is calculated using the 4p.m. EST fair value of Hyperliquid on the day the 9 Staking Rewards are initially accrued. Additions during the quarter primarily represent Hyperliquid purchased due to creations into the Trust and In-Kind Creations. Additions also included Hyperliquid received as reward for staking activities. Dispositions during the quarter represent Hyperliquid sold as a result of shareholder redemptions from the Trust. In addition, Hyperliquid were transferred to pay the Sponsor Fee of the Trust. For the period from May 14, 2026 (commencement of operations) through June 30, 2026, the Trust recognized net realized losses of 1,043,285 , which represents the net of cumulative realized gains of $ 11,930 and cumulative realized losses of $ 1,055,215 . 4 . Related Party Transactions and Agreements The Trust pays a Sponsor Fee of 0.34 % per annum of the Trust’s Hyperliquid holdings. For the one-month period commencing on May 15, 2026 , the day the Shares were initially listed on the Exchange, the Sponsor waived the entire Sponsor Fee on the first $ 500 million of Trust assets through June 14, 2026. The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement. After the period during which all or a portion of the Sponsor Fee was waived, the Sponsor Fee began accruing daily, and will be payable in Hyperliquid monthly in arrears. The Administrator calculates the Sponsor Fee on a daily basis by applying a 0.34 % annualized rate to the Trust’s total Hyperliquid holdings, and the amount of Hyperliquid payable in respect of each daily accrual shall be determined by reference to the CME CF Hyperliquid–Dollar US Settlement Price. The NAV of the Trust is reduced each day by the amount of the Sponsor Fee calculated each day. On or about the last day of each month, an amount of Hyperliquid will be transferred from the Trust Hyperliquid Account to the Sponsor Hyperliquid Account equal to the sum of all daily Sponsor Fees accrued for the month in U.S. dollars divided by the CME CF Hyperliquid–Dollar Reference Rate – New York Variant price on the last day of the month. The Trust is not responsible for paying any fees or costs associated with the transferring of Hyperliquid to the Sponsor. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee’s monthly fee and out-of-pocket expenses, the fees of the Trust’s regular service providers (Cash Custodian, Hyperliquid Custodian, Prime Execution Agent, Marketing Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs, audit fees and up to $ 500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of $ 500,000 per annum. The Sponsor also agreed to pay the costs of the Trust’s organization. The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable brokerage commissions, financing fees, Hyperliquid network fees and similar transaction fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the Shareholders (including, for example, in connection with any fork of the Hyperliquid blockchain, any Incidental Rights and any IR Asset, any indemnification of the Cash Custodian, Hyperliquid Custodian, Prime Execution Agent, Transfer Agent, Administrator or other agents, service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters. See Note 1 for further discussion on related party capital transactions. As of June 30, 2026, the Sponsor owned no Shares of the Trust. 5. Creation and Redemption of Shares The Trust may either create and redeem Shares in-kind for Hyperliquid (“In-Kind Creations” and “In-Kind Redemptions,” respectively) or for cash (“Cash Creations” and “Cash Redemptions,” respectively). When the Trust creates or redeems its Shares, it does so in blocks of 10,000 Shares (each, a “Basket”) based on the quantity of Hyperliquid attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares ( 10,000 ) comprising a Basket (the “Basket Amount”). For an order to purchase (create) a Basket, the purchase shall be in the amount of Hyperliquid represented by the Basket Amount (in the case of an In-Kind Creation) or the amount of U.S. dollars needed to purchase the Basket Amount (plus a per-order transaction fee), as calculated by the Administrator (in the case of a Cash Creation). For an order to redeem a Basket, the Sponsor shall either arrange for the Basket Amount of Hyperliquid to be distributed in-kind (in the case of an In-Kind Redemption) or sold and the cash proceeds (minus a per-order transaction fee) distributed (in the case of a Cash Redemption). The Trust only creates and redeems Baskets in transactions with financial firms that are authorized to purchase or redeem Shares with the Trust (each, an “Authorized Participant”). In the case of In-Kind Creations and In-Kind Redemptions, an Authorized Participant or an Authorized Participant’s designee (“Authorized Participant Designee”) deposits Hyperliquid directly with the Trust or receives Hyperliquid directly from the Trust. Shares initially comprising the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices that depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions at the time of a transaction. Authorized Participants must pay the Transfer Agent a 10 non-refundable fee for each order they place to create or redeem one or more Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by the Sponsor in its sole discretion. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares. Each Authorized Participant is required to be registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, and a member in good standing with FINRA, or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and is qualified to act as a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants may also be regulated under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers as it determines is appropriate in light of its own regulatory regime. The Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants. The Trust has entered into the Cash Custody Agreement with BNY Mellon under which BNY Mellon acts as custodian of the Trust’s cash and cash equivalents. The Trust only creates or redeems its Shares at NAV. Receivable for In-Kind Creations or payable for In-Kind Redemptions, as may be disclosed on the Statement of Assets and Liabilities, represents the value of Hyperliquid covered by contractually binding orders for the creation, or redemption of Shares where the Hyperliquid has not yet been transferred to or out of the Trust's account. 6. Risks and Uncertainties Substantially all the Trust’s assets are holdings of Hyperliquid, which creates a concentration risk associated with fluctuations in the price of Hyperliquid. Accordingly, a decline in the price of Hyperliquid will have an adverse effect on the value of the Shares of the Trust. The trading prices of Hyperliquid have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of Hyperliquid, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of Hyperliquid and the Shares may include an increase in the global Hyperliquid supply or a decrease in global Hyperliquid demand; market conditions of, and overall sentiment towards, the crypto assets and blockchain technology industry; trading activity on crypto asset exchanges, which, in many cases, are largely unregulated or may be subject to manipulation; the adoption of Hyperliquid as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the Hyperliquid Network, and their ability to meet user demands; manipulative trading activity on crypto asset exchanges, which, in many cases, are largely unregulated; and forks in the Hyperliquid Network, among other things. Anchorage Digital Bank N.A. serves as the Trust’s custodian for Hyperliquid for which qualified custody is available (the “Hyperliquid Custodian”). The Hyperliquid Custodian is subject to change in the sole discretion of the Sponsor. Temporary differences in the quantity of Hyperliquid held by the Hyperliquid Custodian from the amounts reflected in the financial statements may occur. These differences are due to pending settlement of Hyperliquid trades with the Hyperliquid Custodian, which generally occurs within two business days of the trade date. Payable for Hyperliquid purchased represents the quantity of Hyperliquid purchased for the creation of Shares where the Hyperliquid has not yet settled. June 30, 2026 December 31, 2025 (Amounts in thousands) (unaudited) Payable for Hyperliquid purchased $ 4 $ — Receivable for Hyperliquid sold represents the quantity of Hyperliquid sold for the redemption of Shares where the Hyperliquid has not yet been settled. June 30, 2026 December 31, 2025 (Amounts in thousands) (unaudited) Receivable for Hyperliquid sold $ — $ — 7. Financial Highlights Per-Share Performance (for a Share outstanding throughout the period presented) 11 For the period May 14, 2026 (commencement of operations) through June 30, 2026* (unaudited) Principal Market NAV per-share, beginning of period $ 25.00 Net investment income (loss) 1 0.04 Net realized and change in unrealized appreciation (depreciation) on investment in Hyperliquid 11.71 2 Net change in net assets from operations 11.75 Principal Market NAV per-share, end of period $ 36.75 Total return, at net asset value 3 47.00 % Ratios to average net assets Gross expenses ( 0.71 ) % 4,5,6 Net expenses ( 0.54 ) % 4,5,6 Net investment income (loss) 0.92 % ,4,5 * No comparative financial statements have been provided as the Trust commenced operations on April 15, 2026. 1. Calculated using average Shares outstanding. 2. Because of the timing of subscriptions and redemptions in relation to fluctuating market values, the amount shown may not agree with the change in aggregate gains and losses. 3. Total return is calculated based on the change in Principal Market NAV during the reporting period. An individual shareholder’s total return and ratios may vary from the above total return and ratios based on the timing of Share transactions from the Trust. Total return is not annualized. 4. Annualized. 5. For the one-month period starting on May 15, 2026 , the day the Trust began accruing expenses, the Sponsor waived the entire Sponsor Fee on the first $ 500 million of Trust assets through June 14, 2026. In addition, for the same period, the Sponsor reimbursed the Trust for all Staking Expenses incurred on the first $ 500 million of Trust assets through June 14, 2026. 6. Gross and net expenses ratios include staking fees of 0.37 % for the period ended June 30, 2026. Without the staking fees, the gross and net expense ratios would have been ( 0.34 )% and ( 0.17 )%, respectively. 8. Segment Reporting An operating segment is defined in FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“Topic 280”), as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. Selective members of the Executive Management Committee and other senior personnel of the Sponsor act as the Trust’s CODM. The Trust represents a single operating segment, as the CODM monitors the operating results of the Trust as a whole and the Trust’s long-term strategic asset allocation is pre-determined in accordance with the terms of its Trust Agreement, based on a defined investment strategy which is executed by the Sponsor. The financial information in the form of the Trust’s assets, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, creations and redemptions), which are used by the CODM to assess the segment’s performance versus the Trust’s comparative benchmarks and to make resource allocation decisions for the Trust’s single segment, is consistent with that presented within the Trust’s financial statement. Segment assets are reflected on the accompanying statement of assets and liabilities as “total assets” and significant segment expenses are listed on the accompanying statement of operations. 12 9. Indemnifications In the normal course of business, the Trust enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote. 7. Subsequent Events The Trust has evaluated subsequent events through August 12, 2026, the date the financial statements were issued, and has determined that there are no subsequent events that require adjustments to or disclosure in the financial statements. 13