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

BlockBeats News, June 6 — Despite Bitcoin and Ethereum continuing to trend down recently, ETF products tracking Hyperliquid ecosystem token HYPE have attracted investors’ attention against the trend. The HYPE spot ETFs launched by Bitwise and 21Shares in May this year (coded BHYP and THYP, respectively) have accumulated nearly $150 million in asset inflows within days of listing, with net inflows on most trading days. The Hyperliquid Staking ETF (HYPG) launched by Grayscale this week currently has $4.5 million in assets under management.

Bitwise Chief Investment Officer Matt Hougan said that Hyperliquid’s current market penetration is only about 1%, and most investors still do not understand the project. Hyperliquid is a decentralized perpetual contract trading platform built on an independent blockchain. It surged quickly during last year’s conflict between the United States and Iran, when it offered weekend crude oil trading channels, with crude oil trading volume reaching roughly $1 billion per day at its peak.

Zach Pandl, Head of Research at Grayscale, said that the HYPE ETF attracts more new investors who previously had not participated in the crypto market, rather than a rotation of Bitcoin funds. Analysts believe Hyperliquid’s biggest draw is its unique value-capture mechanism: 99% of the platform’s fee revenue is 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, 21Shares Hyperliquid ETF has $75.8 million in assets under management, and 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 raise Hyperliquid’s platform visibility and drive mainstream adoption.

However, analysts also remind investors that Hyperliquid is still not directly available in the United States. Regulatory approval may not come until 2027, and competition from both traditional finance and DeFi platforms could continue to intensify.