Hyperliquid ETFs Attract $160 Million as Bitcoin, Ether Funds See Outflows

While capital is fleeing Bitcoin and Ether ETFs, new funds tracking Hyperliquid's HYPE token have attracted nearly $160 million in net inflows since mid-May.

21Shares' THYP launched May 12, followed by Bitwise's BHYP around May 15. A record single-day inflow of $25.5 million hit across the two products. The funds charge competitive expense ratios: 0.30% for THYP and 0.34% for BHYP.

This inflow occurred as Bitcoin ETFs hemorrhaged over $1 billion in a single week.

Hyperliquid is a Layer 1 blockchain built for decentralized trading. Its native HYPE token powers network fees and staking. Analysts see the inflows as evidence of organic interest, not just speculation.

Grayscale is reportedly considering its own Hyperliquid product, potentially a staking ETF offering a yield component. The entry of a third major issuer would be unprecedented, as fee waivers from 21Shares and Bitwise suggest they are preparing for competition.

However, the risk is distinct: HYPE is a smaller-cap token with thinner liquidity, which could create tracking challenges for the ETFs during volatile periods.