HYPE ETFs Defy Typical Debut Patterns With Unexpected 50% Trading Surge
Bloomberg's Eric Balchunas notes a significant uptick in Hyperliquid ETF activity as the token outperforms against a backdrop of declining crypto and traditional markets.
Exchange-traded funds linked to HYPE in the United States experienced an unexpected 50% surge in trading volume on Wednesday, marking an unusual pattern for recently launched ETF products, industry analysts have confirmed.
Hyperliquid (HYPE) exchange-traded funds from financial firms Bitwise and 21Shares have accumulated approximately $41 million in combined trading value following their market debuts earlier in May, with volume activity showing consistent growth since their respective launch dates, data from SoSoValue indicates.
In a Wednesday post on X, Eric Balchunas, an ETF analyst at Bloomberg, noted that such upward momentum in trading activity for new ETFs is "very rare," explaining that most products typically see a "big splash [on] day one then drop off OR oblivion for months until [people] notice it. Rare to build in first week like this."
According to Balchunas, the exceptional performance of these ETF products can be attributed to a "perfectly timed launch as EVERYTHING (stocks, bonds, gold, btc [Bitcoin], cryptos) is down lately except the HYPE."
According to data from CoinGecko, the Hyperliquid token has surged 120% year-to-date and has climbed 18.5% over the last 24 hours to reach $56. The platform and its native token have attracted significant trader interest, with market observers identifying it as a potential breakout cryptocurrency investment due to its substantial market share in the crypto perpetual futures sector.
In comparison, during the past 12 months, the S&P 500 index has posted gains of 8.6%, the Nasdaq 100 technology index has advanced 16%, and Bitcoin has declined 11%.
This development follows statements made one day earlier by Bitwise, one of the two firms offering a US-based HYPE exchange-traded fund, claiming that market participants had undervalued HYPE, asserting that the platform represents more than a simple crypto exchange, but rather a "super-app" that spans multiple asset categories.
The first HYPE fund to debut in the United States came from 21Shares, which launched its 21Shares Hyperliquid ETF (THYP) on May 12, attracting $1.2 million in net inflows, a figure significantly lower compared to other alternative cryptocurrency ETF launches including those focused on Solana staking.
Days later on May 14, the Bitwise Hyperliquid ETF (BHYP) made its market debut, garnering $750,000 in net inflows during its initial trading session.
Wednesday marked the peak inflow day for both exchange-traded funds, with the pair collectively securing $25.5 million in net inflows. The 21Shares product attracted $16.6 million, whereas the Bitwise offering brought in $8.8 million.
Digital asset management firm Grayscale has also submitted an application for a Hyperliquid ETF in March, with the proposed fund currently undergoing review by United States regulatory authorities.
On Wednesday, the Lookonchain X account reported that two cryptocurrency wallets associated with Grayscale had acquired approximately $25 million in HYPE tokens during the previous week and proceeded to stake them, though it remains unclear whether this activity is connected to the firm's proposed ETF product.