As Bitcoin plummets, HYPE ETF defies the trend by attracting nearly $160 million, sparking a new wave of crypto enthusiasm on Wall Street

Despite the recent continuous decline of Bitcoin and Ethereum, the ETF product tracking the Hyperliquid ecosystem token HYPE has seen a surge in funding. The HYPE spot ETFs launched by Bitwise and 21Shares in May of this year (with codes BHYP and THYP respectively) attracted nearly $150 million in asset inflows within a few days of listing, achieving net inflows on most trading days. Grayscale's Hyperliquid Staking ETF (HYPG), launched this week, currently has assets totaling $4.5 million.

Bitwise Chief Investment Officer Matt Hougan stated that Hyperliquid's market penetration is currently only about 1%, and most investors are still unfamiliar with the project. Hyperliquid is a decentralized perpetual contract trading platform built on an independent blockchain, which rapidly rose to prominence during the U.S.-Iran conflict last year by providing weekend crude oil trading channels, with trading volumes reaching about $1 billion per day at one point.

Grayscale Research Director Zach Pandl noted that the HYPE ETF attracts more new investors who have not previously participated in the crypto market, rather than capital rotation from Bitcoin. Analysts believe that Hyperliquid's biggest appeal lies in its unique value capture mechanism—99% of the platform's generated fee revenue will be used to repurchase HYPE tokens, similar to stock buybacks by listed companies, creating a direct link between platform activity and token value, making it easier for traditional equity investors to understand.

As of now, the 21Shares Hyperliquid ETF has assets under management of $75.8 million, while the Bitwise Hyperliquid ETF has $71.14 million. Industry insiders believe that spot ETFs are becoming an important bridge connecting traditional finance and DeFi, helping to enhance the visibility of the Hyperliquid platform and promote mainstream adoption. However, analysts also remind that Hyperliquid cannot be used directly in the U.S. yet, and regulatory approval may not come until 2027, while competition from traditional finance and DeFi platforms may continue to intensify.