A significant shift in crypto investment trends has emerged as hyperliquid (HYPE) ETFs attracted nearly $160 million in inflows within days of their launch, despite a sharp decline in bitcoin and ether ETF prices and outflows from these established products [1]. The new ETFs, launched in May by Bitwise and 21shares under the tickers BHYP and THYP, have raised close to $150 million in assets and have mostly experienced positive net inflow days since inception. Grayscale also entered the market with its Grayscale Hyperliquid Staking ETF (HYPG) [1].
The appeal of hyperliquid ETFs lies in their unique buyback model, which uses platform trading fees to repurchase HYPE tokens, directly linking platform activity to token value. This model is seen as more transparent and understandable compared to other crypto tokens, where the relationship between platform activity and token value is often indirect. Zach Pandl, Grayscale's head of research, noted that hyperliquid is attracting a different type of investor, including those from outside the traditional crypto ecosystem [1].
Hyperliquid itself is a decentralized perpetual futures exchange operating on its own blockchain, primarily serving traders outside the United States. The platform gained attention last summer during the U.S.-Iran war, when traders sought weekend access to oil markets, pushing daily trading volume in crude oil to roughly $1 billion, according to Stephen Coltman of 21shares [1].
While spot bitcoin ETFs such as the iShares Bitcoin Trust ETF (IBIT) ended the week down around 16% and have been experiencing asset outflows, HYPE ETFs are seeing robust inflows. ETF experts suggest that this is not simply a rotation out of existing crypto assets, but rather new money entering the market, drawn by the innovative structure and growth potential of hyperliquid [1]. Bitwise CIO Matt Hougan emphasized that the market is still in its early stages, with only about 1% penetration into its potential market [1].
CONCLUSION
Despite a steep selloff in bitcoin and ether, hyperliquid ETFs have quickly attracted substantial investor interest and capital, highlighting a shift toward new crypto products with transparent revenue models. The inflows suggest that investors are seeking alternatives to traditional crypto assets, and the market for hyperliquid ETFs may continue to expand as awareness grows.