Hyperliquid ETFs pull in $160M in weeks as Bitcoin and Ether funds bleed capital

While Bitcoin and Ether investors have been nursing their wounds through a rough stretch, a pair of brand-new ETFs tracking the HYPE token have collectively attracted nearly $160 million in net inflows since launching in mid-May 2026.

Two new ETFs, one very loud signal

21Shares listed THYP on May 12, with Bitwise’s BHYP following around May 15. In their first week of trading, inflows ranged between $22 million and $54 million, depending on the fund.

One Wednesday session produced a record single-day inflow of $25.5 million across the products.

The expense ratios are competitive. THYP charges 0.30% and BHYP comes in at 0.34%, with some initial fee waivers reported for early investors.

These inflows didn’t happen in a vacuum. They occurred while Bitcoin ETFs were hemorrhaging capital. Bitcoin products alone saw more than $1 billion in outflows during a single week in the same period.

Why Hyperliquid, and why now

Hyperliquid operates as a high-performance Layer 1 blockchain built specifically for decentralized trading. Its native HYPE token powers the network’s fee structure and staking mechanisms.

Analysts have pointed to the inflows as evidence of genuine, organic interest rather than speculative froth. The fact that most inflow days recorded positive net gains reinforces that interpretation. The appeal of 24/7 trading access through an ETF wrapper has also been cited as a factor.

Grayscale circling, competition heating up

Grayscale is reportedly moving toward launching its own Hyperliquid-linked product, potentially structured as a staking ETF. That would add a yield component that the existing spot products don’t offer.

The competitive dynamics here are worth watching. Three major issuers competing for flows into the same altcoin token would be unprecedented. The early fee waivers from 21Shares and Bitwise suggest they’re already thinking about this.

The risk profile here is also meaningfully different from holding Bitcoin or Ether through an ETF. HYPE is a smaller-cap token with thinner liquidity in spot markets, which means the ETF itself could face tracking challenges during periods of high volatility.

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