HYPE ETF Debut Draws $1.8M as Whales Rush to Hyperliquid Token

Key Insights

• The newly launched HYPE ETF gained $1.8 million after its launch on Tuesday.
• The token may attract modest inflows in the near term because of its strong fundamentals.
• Hyperliquid’s revenue has continued soaring as the token burn accelerated.

The 21Shares HYPE ETF recorded $1.8 million in inflows after launching on Nasdaq Tuesday, giving the Hyperliquid-linked fund a relatively solid debut despite weaker crypto market momentum.

Bloomberg ETF analyst James Seyffart described the launch as “very solid” for a newly listed altcoin ETF.

HYPE ETF Attracted $1.8 Million in Inflows

One of the top crypto news stories on Tuesday was the launch of the 21Shares HYPE ETF, which debuted at the NASDAQ.

Data shows that the fund affected over $1.8 million in inflows, a figure that Bloomberg’s James Seyffart said that this was a very solid reception.

The THYP ETF will next be followed by the upcoming launch of Hyperliquid token ETFs by companies like Bitwise and Grayscale, which are some of the biggest companies in the industry.

Still, altcoin ETFs have struggled to attract inflows in the United States. Data shows that spot Bitcoin ETFs have had almost $60 billion in cumulative inflows.

Spot Ethereum ETFs have added $11.9 billion in inflows. Other smaller altcoins like Litecoin, Dogecoin, Hedera (HBAR), and Polkadot have failed to attract any inflows this year. For example, the three Dogecoin ETFs have had only $10 million in inflows, while spot Avalanche ETFs have added $24 million.

It is still unclear whether the 21Shares ETF, together with those by companies like Bitwise and Grayscale will attract substantial inflows when they are launched.

Hyperliquid is in a Good Position to Attract Inflows

The spot HYPE ETFs may attract inflows once they are launched because of its strong fundamentals.

For one, data compiled by TokenTerminal shows that it is one of the most profitable players in the crypto industry. It made over $881 million in revenue in the last 12 months, making it the fourth player after Tether, Tron, and Circle. Notably, this is a strong number for a company with less than 10 employees.

Hyperliquid’s revenue comes from the fees it charges its customers when they trade perpetual futures on the platform. For example, data shows that the network handled over $177 billion in futures in the last 30 days, much higher than its close competitors like edgeX, Aster, and Grvt.

The network also makes money in other ways, including stablecoin transactions. Data shows the network’s layer-1 network has over $5.38 billion in supply, with USD Coin (USDC) and USDT having the biggest market share.

At the same time, Hyperliquid is continuing to grow its business, especially after it recently launched Outcome, a prediction marketplace that is competing with companies like Polymarket and Kalshi.

HYPE ETFs may also attract inflows because of its tokenomics. Data shows that the network has a total supply of 955 million tokens and a maximum supply of over 961 million. It continues to use its revenue to burn and also buy back its tokens, a move that reduces its inflation.

The token is also seeing strong demand among stakers and whales. On Tuesday, BitGo added the HYPE token to its custody and staking platform. HYPE tokens worth over $17.5 billion, which is equivalent to 45% of staking ratio, have been staked. The token has a staking rate of 2.25%.

HYPE Price Technical Analysis

The daily chart shows that the HYPE price has dropped sharply in the past few days, moving from a high of $45.70 in April to the current $40.

It has moved below the rising trendline that connects the lowest swings in January, February, and April this year. This line is the lower side of the rising wedge pattern, a common bearish reversal sign in technical analysis.

The Relative Strength Index dropped below the neutral 50 level, while price also moved beneath the 50-day Exponential Moving Average.

If selling pressure continues, traders may watch the $35 area as the next major support level.

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