Overview
- JPMorgan said Thursday that inflows into U.S.-listed HYPE spot ETFs surged after their mid-May launches but largely stalled in July and early August.
- Crypto Briefing and JPMorgan figures show that the products recorded roughly $280 million in peak cumulative inflows before posting nearly $30 million in net outflows through early August.
- Analysts point to increased competition from newly rolled-out U.S. regulated derivatives and a growing crop of altcoin ETFs as the main reasons investors rotated capital away from HYPE wrappers.
- Hyperliquid’s Assistance Fund funnels about 99% of platform trading fees into open-market HYPE buybacks, a structural support that proved insufficient to stop a roughly 13% price drop from June peaks in July.
- Because HYPE ETFs remain small versus bitcoin and ether funds, the stall raises questions about Hyperliquid’s ability to regain market share and could steer trading volume and treasury buyers toward regulated centralized venues.