BlockBeats report, August 6: J.P. Morgan stated that the Hyperliquid (HYPE) ETF led non-bitcoin crypto fund inflows in May and June, but demand has largely stalled in July and early August, reflecting growing market concerns about its competitive prospects.
Analysts led by Nikolaos Panigirtzoglou note that decentralized platforms such as Hyperliquid are facing significant market share pressure. Following the launch of regulated U.S. crypto perpetual futures products, some trading activity may shift from overseas decentralized platforms to compliant centralized exchanges, which offer advantages in licensing, compliance, and investor protection.
JPMorgan also noted that Hyperliquid is expanding its prediction markets business, but competition in this space is intensifying. Although HYPE has become the fourth-largest asset in corporate crypto treasuries, after BTC, ETH, and SOL, it remains uncertain whether it can continue to gain market share from larger ecosystems such as Solana and XRP.
Currently, the AUM for BTC and ETH ETFs is approximately $77 billion and $10 billion, respectively, while other crypto ETFs including SOL, XRP, and HYPE total only about $2 to $3 billion. HYPE declined over 3% in the past 24 hours, trading at approximately $55.30.