Hyperliquid (HYPE) ETFs See 50% Volume Surge After Launch
Trading volumes for Hyperliquid (HYPE)-linked ETFs surged 50% this week, with combined net inflows hitting $25.5 million on Wednesday. The spike follows the U.S. launches of spot ETFs from Bitwise and 21Shares earlier this month, offering regulated exposure to the HYPE token.
The 21Shares Hyperliquid ETF (THYP) debuted on Nasdaq on May 12, while the Bitwise Hyperliquid ETF (BHYP) launched on the NYSE on May 15. Together, they have amassed $41 million in trading volume since launch, according to data from SoSoValue. Analysts attribute their success to precise timing—traditional assets like stocks, bonds, and Bitcoin have struggled, while HYPE has soared 120% year-to-date, including an 18.5% single-day jump to $56 earlier this week.
What’s Driving the Interest?
Bloomberg ETF analyst Eric Balchunas described the strong early performance as "rare," noting that ETFs typically see an initial surge before stabilizing or declining. Instead, the HYPE funds have sustained growth, a trend Balchunas credits to their launch coinciding with a weak broader market and HYPE's outperformance. The S&P 500 has gained 8.6% this year, and the Nasdaq is up 16%, but Bitcoin remains down 11%—further emphasizing HYPE's appeal.
HYPE is the native asset of the Hyperliquid blockchain, a decentralized exchange specializing in perpetual futures and spot trading. Leveraging a delegated proof-of-stake system, the protocol has carved out significant market share in derivatives trading, helping to sustain the token's bullish momentum. As of May 21, HYPE's price sits at $47.62, up nearly 6% in the past 24 hours, and its market cap has reached $12.11 billion, according to CoinGecko.
ETF Staking: A Unique Feature
Both THYP and BHYP differentiate themselves by staking the underlying HYPE tokens to earn protocol rewards. This approach could enhance returns but introduces additional complexities, particularly around regulatory oversight and operational risks. Bitwise manages staking in-house, while 21Shares collaborates with third-party provider Figment. These mechanisms set the HYPE ETFs apart from traditional crypto ETFs, which typically avoid staking due to its complexities.
Wednesday marked a milestone for both funds, with THYP recording $16.6 million in net inflows and BHYP adding $8.8 million. Such robust interest reflects investor appetite for alternative assets during periods of broader market underperformance.
Grayscale Eyes HYPE Market
Competitors are also taking notice. Grayscale filed for a Hyperliquid ETF in March, and blockchain data suggests wallets tied to the firm recently purchased $25 million worth of HYPE, staking the tokens. While Grayscale has not confirmed if the move relates to its pending ETF, the activity signals growing institutional interest in the token.
What’s Next?
The success of HYPE ETFs could set a precedent for the broader crypto ETF market. With cumulative perpetual futures volume on Hyperliquid already in the trillions, the platform’s momentum appears strong. Investors will be watching closely as both funds continue to attract inflows and as Grayscale waits for regulatory approval.
For traders, the combination of HYPE’s price strength and the staking component of these ETFs presents an intriguing opportunity—though one not without risks, particularly as crypto markets remain volatile. Near-term, the focus will remain on whether these funds can sustain inflows and how this impacts HYPE's broader adoption.