Amid weakness in Bitcoin and Ethereum and outflows from related spot ETFs, the ETF tracking Hyperliquid has seen逆势 inflows. According to CNBC, recently launched products from Bitwise, 21Shares, and Grayscale have collectively attracted nearly $160 million in inflows shortly after their listings.
New product attracts funding despite market headwinds
In May, Bitwise and 21Shares launched spot ETFs tracking the HYPE index, with ticker symbols BHYP and THYP, respectively. Reports citing data indicate that the combined assets under management of these two products have approached $150 million, with net inflows recorded on most trading days since their launch. Grayscale also launched the Hyperliquid Staking ETF this Wednesday, with the ticker symbol HYPG.
This contrasts with the performance of mainstream crypto ETFs. The report noted that during the sharp decline in Bitcoin’s price, spot Bitcoin ETFs continued to experience outflows, with BlackRock’s IBIT down approximately 16% for the week.
The market values the buyback model.
Hyperliquid is a decentralized perpetual futures trading platform operating on its own blockchain, primarily serving 24-hour traders outside the United States. Several interviewees believe that the key reason these ETFs have garnered attention is that HYPE's value capture mechanism is more easily understood by traditional investors.
Bitwise Chief Investment Officer Matt Hougan said that 99% of fees generated on the Hyperliquid platform will be used to repurchase HYPE tokens, creating a more direct link between platform trading activity and token value. Stephen Coltman, Head of Macro at 21Shares, compared this to publicly traded companies repurchasing shares with cash.
TradFi funds are beginning to take notice
Grayscale research head Zach Pandl believes that such products may attract new investors entering this niche segment for the first time, rather than solely drawing existing crypto capital away from Bitcoin. Nate Geraci also noted that spot crypto ETFs are becoming a vital bridge for traditional finance to access decentralized finance, and that the HYPE ETF has at least increased market awareness of the Hyperliquid platform itself.
The report also noted that Hyperliquid gained increased attention last summer due to heightened weekend crude oil trading demand driven by geopolitical tensions. According to 21Shares, crude oil-related trading volume on the platform surged to approximately $1 billion per day at that time.
However, interviewees also cautioned that Hyperliquid currently has limited market awareness and will face competition from traditional financial platforms and other DeFi protocols in the future. Regulatory changes may further intensify this competition.