Hyperliquid ETFs See 50% Volume Jump After Initial Slow Start
Hyperliquid ETFs Record 50% Volume Jump – Rising Trading Activity Follows Initial Slow Launch
Key Takeaways
- Two US-based Hyperliquid ETFs recorded a 50% increase in trading volume on Wednesday.
- The funds have generated nearly $41 million in total value traded since launching earlier this month.
- Combined net inflows reached $25.5 million on their strongest day, led by 21Shares with $16.6 million.
- Hyperliquid’s HYPE token is up 120% year to date and 18.5% in the past 24 hours, trading at $56.
Trading Volume Accelerates After Measured Debut
US-listed exchange-traded funds tied to the Hyperliquid token HYPE posted a 50% jump in trading volume on Wednesday, marking an uncommon pattern for newly launched ETFs. According to data referenced by Bloomberg ETF analyst Eric Balchunas, many new ETFs experience a strong first trading day followed by declining activity or extended periods of limited interest. In this case, trading activity increased after launch rather than tapering off.
Two issuers brought Hyperliquid-linked products to market in May. The 21Shares Hyperliquid ETF, trading under the ticker THYP, launched on May 12. The Bitwise Hyperliquid ETF, trading as BHYP, followed on May 14. Since their respective debuts, the two funds have recorded nearly $41 million in total value traded, based on figures cited from SoSoValue.
Balchunas described the post-launch buildup in trading as rare, noting that ETF flows typically peak on day one before declining. Instead, both Hyperliquid products recorded their highest combined day of net inflows on Wednesday.
Strongest Inflow Day Brings $25.5 Million
On their most active inflow day so far, the two ETFs attracted a combined $25.5 million in net new capital. The 21Shares product accounted for $16.6 million of that amount, while Bitwise recorded $8.8 million.
Initial inflows were comparatively modest. When 21Shares launched THYP on May 12, it drew $1.2 million in net inflows. Bitwise’s BHYP debuted with $750,000 in net inflows on May 14. The subsequent rise in trading volume and capital allocation therefore represents a shift in momentum during the first weeks of trading.
Balchunas attributed the increase in interest to broader market conditions. He stated that traditional assets and major cryptocurrencies have been trading lower, while HYPE has moved in the opposite direction. According to his assessment, the timing of the ETFs’ launch coincided with relative strength in the underlying token.
HYPE Token Performance Diverges From Broader Markets
Market data cited in the report show that the Hyperliquid token has gained 120% since the beginning of the year. In the past 24 hours alone, it rose 18.5% to trade at $56, according to CoinGecko.
This performance stands in contrast to several major benchmarks over the past year. The S&P 500 has gained 8.6%, and the Nasdaq 100 has risen 16% during that period. Bitcoin, by comparison, has fallen 11% over the same timeframe.
Balchunas stated that most asset classes, including stocks, bonds, gold, Bitcoin, and other cryptocurrencies, have recently traded lower, while HYPE has advanced. The divergence has drawn trading attention toward products linked to the token.
Platform Positioning and Market Activity
Hyperliquid has attracted attention from traders, with some analysts describing it as a potential leading crypto market theme due to its role in the perpetual futures segment. The platform has captured a significant share of the crypto perpetual futures market, according to the report.
Bitwise, one of the two ETF issuers, recently argued that HYPE had been mispriced by traders. The company stated that Hyperliquid should not be viewed solely as a crypto exchange, but as a broader application that spans multiple asset classes.
In parallel, crypto asset manager Grayscale filed for a Hyperliquid ETF in March. That proposed fund remains under review by US regulators.
Blockchain tracking account Lookonchain reported that two wallets linked to Grayscale purchased $25 million worth of HYPE over the past week and staked the tokens. It is not known whether those purchases are connected to Grayscale’s pending ETF application.
ETF Market Context for Crypto Investors
The launch and early performance of Hyperliquid-linked ETFs add to the expanding range of exchange-traded products tied to specific crypto tokens. Compared with other altcoin ETF launches, such as those focused on Solana staking, initial inflows into the Hyperliquid funds were lower. However, the subsequent acceleration in trading volume and net inflows differentiates these products from typical launch patterns.
For market participants evaluating crypto exposure through regulated exchange-traded products, the early trajectory of THYP and BHYP highlights how token price movements can influence fund activity shortly after listing. The 50% jump in trading volume underscores how investor interest can increase when the underlying asset outperforms broader markets.
Our Assessment
The two US-based Hyperliquid ETFs have shifted from modest launch inflows to a period of accelerating trading activity, culminating in a 50% rise in volume and $25.5 million in combined net inflows on their strongest day. This development has occurred alongside a 120% year-to-date increase in the HYPE token and relative underperformance in several traditional and crypto benchmarks. Additional regulatory developments may follow, as Grayscale’s separate Hyperliquid ETF filing remains under review.
