ChainCatcher report: Despite recent declines in Bitcoin and Ethereum, ETF products tracking Hyperliquid’s native token, HYPE, have attracted significant capital inflows. Bitwise and 21Shares launched spot HYPE ETFs in May this year (ticker symbols: BHYP and THYP), which have collectively drawn nearly $150 million in assets within days of listing, with net inflows on most trading days. Grayscale’s newly launched Hyperliquid Staking ETF (HYPG) has already reached $4.5 million in assets under management. Bitwise’s Chief Investment Officer, Matt Hougan, noted that Hyperliquid’s current market penetration is only around 1%, with most investors still unfamiliar with the project. Hyperliquid is a decentralized perpetuals trading platform built on its own blockchain; it gained rapid traction during last year’s U.S.-Iran tensions by offering weekend crude oil trading, at one point reaching daily trading volumes of approximately $1 billion. Grayscale’s Research Head, Zach Pandl, stated that HYPE ETFs are attracting primarily new investors who had not previously participated in the crypto market, rather than capital rotating out of Bitcoin. Analysts believe Hyperliquid’s greatest appeal lies in its unique value-capture mechanism: 99% of platform fee revenue is used to repurchase HYPE tokens—similar to corporate stock buybacks—directly linking platform activity to token value in a way that resonates more readily with traditional equity investors. To date, the 21Shares Hyperliquid ETF has $758 million in assets under management, while the Bitwise Hyperliquid ETF holds $711.4 million. Industry participants view spot ETFs as a critical bridge connecting traditional finance with DeFi, helping to raise Hyperliquid’s profile and accelerate mainstream adoption. However, analysts also caution that Hyperliquid remains inaccessible directly in the U.S., with regulatory approval potentially not arriving until 2027, while competition from both traditional finance and other DeFi platforms is likely to intensify.
HYPE ETF Attracts $160M Amid Bitcoin's Decline, Sparks Wall Street Crypto Buzz
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Summary
Bitcoin ETF news: HYPE ETFs from Bitwise and 21Shares have attracted $150 million since May, despite declines in Bitcoin and Ethereum. Grayscale’s HYPG ETF reached $4.5 million. Bitwise CIO Matt Hougan notes Hyperliquid’s market share is just 1%. Hyperliquid, a decentralized platform, recorded $1 billion in daily trading volume during the 2025 U.S.-Iran conflict. ETF news highlights its 99% fee-based buyback model. Bitwise and 21Shares now manage $75.8 million and $71.14 million, respectively. Hyperliquid remains unavailable in the U.S., facing regulatory and competitive challenges.
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