HYPE funds draw in millions as investors pull capital from bitcoin and ether ETFs

Crypto fund flows are beginning to diverge, as investors pull money out of bitcoin and ether exchange-traded funds (ETFs) and reallocate capital toward alternative tokens like Hyperliquid’s HYPE and XRP.

Bitcoin ETFs recorded over $1 billion in outflows last week, marking an extended period of institutional retreat, while ether funds shed an additional $215 million, according to SoSoValue. The sustained withdrawals from the two largest cryptocurrencies point to weakening demand for broad, large-cap crypto exposure.

However, the shift in capital is not a wholesale exit from the market.

Investment products tied to Hyperliquid’s HYPE token, offered by Bitwise and 21Shares, attracted a combined $72.38 million in inflows, highlighting a more selective reallocation of funds. Meanwhile, XRP and Solana ETFs also saw positive flows, drawing in $22 million and $15.6 million, respectively.

“The key takeaway is that capital isn’t leaving crypto entirely—it’s rotating into newer themes while moving away from crowded large-cap trades,” said Timothy Misir, head of research at BRN.

HYPE’s recent price action reflects this growing interest. The token has surged from $38 to $63 over the past 10 days and is up 59% on the month, significantly outperforming bitcoin’s modest 1% gain over the same period.

The underlying Hyperliquid platform is also seeing strong traction. It generated $13.2 million in fees over the past week, ranking fifth overall, behind major players like Tether, Circle, and Pump. Canton Network placed fourth, though its figures were largely boosted by incentive programs, according to DeFiLlama data.

Further growth may be on the horizon following Hyperliquid’s partnership with Coinbase and Circle to integrate USDC as a quote asset, a move expected to enhance trading activity and revenue.

Some analysts believe Hyperliquid is quickly positioning itself as a serious competitor to traditional trading venues and prediction platforms. Since the onset of the Iran conflict in late February, its HIP-3 market has consistently processed millions in volume tied to perpetual futures on real-world assets such as oil, gold, and U.S. equity indices.

Data from Artemis shows that Hyperliquid’s fundamentals continue to strengthen, with HIP-3 markets reaching a record $2.6 billion in open interest across RWA perpetuals. Meanwhile, the recently launched HIP-4 outcome markets are still in early growth stages.

According to Artemis, emerging segments like equity perpetuals, pre-IPO trading, and prediction markets remain in their infancy—leaving Hyperliquid well positioned to capitalize on the next wave of market expansion.