Popular ETFs Rarely Soar in Their First Week; Eric Balchunas Says Their Launch Timing Is “Perfect”

On Wednesday, trading volume for U.S. high-liquidity ETFs surged again by 50%.

According to data from SoSoValue, since the start of this month, 21Shares’ THYP and Bitwise Asset Management’s BHYP have combined for nearly $41 million in trading volume.

Rare momentum behind the ultra-liquid ETFs Bloomberg ETF analyst Eric Balchunas pointed out that the trading volumes of these two funds rose by 50% on Wednesday alone, reflecting a sharp increase in market activity.

In an article on the X website, Balchunas said the launch of the two funds was “timed just right,” adding that most major asset classes—including stocks, bonds, gold, Bitcoin, and the broader cryptocurrency market—have recently been falling.

On the other hand, since THYP launched on May 12, HYPE has risen 37%. Balchunas said it is “rare” for new ETFs to see continued growth in trading activity throughout their first week, because new ETFs typically see their initial hype fade shortly after launch.

21Shares launched THYP on May 12, becoming the first U.S. issuer to offer an ETF linked to the HYPE index, which attracted $1.2 million in net inflows. BHYP followed on May 14, with $750,000 in net inflows, and has maintained an upward trend since its launch.

Grayscale Investments has also joined the competition with investment products linked to high-liquidity tokens; the company filed an application for the HYPE ETF in March.

The fund is still under review by U.S. regulators. Meanwhile, blockchain analytics platform Lookonchain reported that over the past week, wallets associated with Grayscale purchased and staked 510,387 HYPE tokens, worth approximately $24.95 million.

Wallets linked to Galaxy Digital also bought 158,100 HYPE tokens, valued at about $8.8 million. From a more macro perspective, HYPE’s ultra-liquidity growth trajectory shows that HYPE is up nearly 40% this month to date, with a year-to-date return of close to 123%.

Bitwise Chief Investment Officer Matt Hougan recently described the platform as one of the most important cryptocurrency projects to emerge in recent years. He also believes investors are still underestimating its long-term impact and the value of the HYPE token.