Odaily Planet Daily reports that JPMorgan, an investment bank on Wall Street, stated that Hyperliquid (HYPE)-related ETFs were among the top performers in terms of fund inflows among non-Bitcoin crypto funds in May and June; however, fund inflows significantly slowed in July and early August as market competition intensified, raising growing concerns about the protocol’s future competitiveness.
JPMorgan analyst Nikolaos Panigirtzoglou’s team noted in their report that Hyperliquid ETF led other non-BTC crypto funds in net inflows relative to assets under management (AUM) in May and June, but this trend has recently faded.
Hyperliquid has become one of the most talked-about growth stories in the crypto market this year, with its native token HYPE surging due to heavy usage of its decentralized perpetuals trading platform. Its rapid growth has positioned Hyperliquid as one of the largest crypto ecosystems after Bitcoin and Ethereum, attracting institutional capital, corporate treasury investors, and ETF issuers.
However, J.P. Morgan believes that decentralized derivatives platforms are facing increasing competitive pressure from regulated centralized exchanges. As crypto perpetual futures products under the U.S. regulatory framework gradually launch, some trading activity may shift from offshore decentralized platforms like Hyperliquid to compliant trading venues.
In addition, the report notes that Hyperliquid is expanding into prediction markets to reduce its reliance on revenue from perpetual contract trading fees, but this sector is also facing increasingly intense competition.
JPMorgan stated that although Hyperliquid has been one of the most standout projects in this year’s crypto market and has become the fourth-largest asset in corporate crypto reserves—behind Bitcoin, Ethereum, and Solana—its ability to further expand market share from competitors such as Solana and XRP remains uncertain.
Data shows that Bitcoin and Ethereum ETFs currently have asset under management of approximately $77 billion and $10 billion, respectively, while other crypto ETFs, including those for Solana, XRP, and Hyperliquid, collectively amount to only about $2 to $3 billion. (CoinDesk)