Hyperliquid Expands into IPO Pre-Markets and Prediction Contracts, Faces Regulatory Scrutiny

According to CoinDesk, the crypto derivatives platform Hyperliquid is expanding comprehensively into pre-IPO markets, prediction contracts, and tokenized real-world assets, increasingly competing directly with traditional exchanges and prediction markets such as CME, Kalshi, and Polymarket. FalconX’s latest report indicates that Hyperliquid’s HIP-3 markets now support 24/7 trading of stocks, commodities, forex, and pre-IPO contracts, while HIP-4 has introduced binary prediction markets based on political, economic, and crypto events. Meanwhile, the spot HYPE ETFs launched by 21Shares and Bitwise have collectively attracted over $530 million in inflows within just a few trading days, surpassing the initial listing levels of Bitcoin, Ethereum, and Solana ETFs in terms of market share. The platform’s integration agreements with Coinbase and Circle for USDC are expected to generate approximately $160 million in annual protocol revenue. However, CME and ICE have raised concerns with regulators regarding potential market manipulation risks, placing the platform under growing regulatory scrutiny. Currently, Hyperliquid remains the leader in decentralized perpetual contracts markets in terms of trading volume, revenue, and total value locked; the HYPE token has risen 94% over the past three months.