Українська
Русский
English
Investors Pull Billions from BTC and ETH ETFs and Move into HYPE
The crypto ETF market has started to change sharply. While hundreds of millions of dollars continue to flow out of bitcoin and Ethereum funds, some capital is unexpectedly shifting towards more aggressive altcoin stories — primarily $HYPE from Hyperliquid.
Over the past week, investors have withdrawn more than $1 billion from spot bitcoin ETFs and another roughly $215 million from Ethereum funds. But this money is not leaving the crypto market completely.
It is gradually flowing into new areas related to on-chain trading, tokenised assets and prediction markets. Hyperliquid currently appears to be the main favourite of this rotation.
$HYPE Has Become One of the Market’s Main New Favourites
New investment products based on $HYPE from funds attracted approximately $72 million in a short period of time. For a relatively young asset, this is a very significant result, especially amid mass outflows from the largest crypto funds.
At the same time, XRP ETF and ETP products received around $22 million in inflows, while Solana funds attracted approximately $15.6 million.
This shows an important shift in investor behaviour. Capital is not leaving crypto altogether. Instead, the market is beginning to actively redistribute money from classic large assets into narrower and fast-growing areas.
The Market Is Tired of the “Broad Bet” on Crypto
Analysts note that ETFs on $BTC and $ETH are gradually ceasing to be perceived as the only entry point into the crypto market. This is especially the case after bitcoin failed to consolidate above $80,000, while Ethereum continues to noticeably lag in terms of performance.
Against this backdrop, investors are increasingly looking for stronger local trends. And right now, $HYPE has become one of the main centres of such demand.
BRN Head of Research Timothy Misir said that the market is beginning to move away from the “overcrowded large-cap segment” towards new growth stories. According to him, capital is being redistributed selectively rather than leaving the industry.
$HYPE Has Risen by Almost 60% in a Month
Demand for ETFs coincided with a sharp rise in the Hyperliquid token itself. Over the past 10 days, $HYPE has climbed from around $38 to $63, while its monthly growth has already approached 59%. By comparison, bitcoin gained around 1% over the same period.
This divergence in performance is increasing the interest of speculative capital. This is especially true given that Hyperliquid is gradually turning not merely into another DeFi platform, but into a full-fledged trading ecosystem with its own derivatives markets.
Hyperliquid Is Rapidly Increasing Fees and Volumes
Over the past seven days, Hyperliquid has earned around $13.2 million in fees. By this measure, the platform is already among the largest crypto projects on the market, trailing only selected giants such as Tether, Circle and Pump.fun.
At the same time, the platform’s growth continues. Hyperliquid recently reached an agreement with Coinbase and Circle to integrate USDC as a base asset for trading. This should further increase liquidity and make it easier for large traders to operate.
The market is paying particularly close attention to the HIP-3 segment — trading in perpetual contracts on real-world assets.
Hyperliquid Has Begun Competing with Traditional Platforms
After the start of the conflict around Iran, volumes on HIP-3 markets rose sharply. The platform is now actively used to trade perpetual contracts linked to oil, gold and US stock indices.
According to analysts, open interest in the RWA perps segment has already reached approximately $2.6 billion — a new high for the platform.
In effect, Hyperliquid is beginning to enter territory that was previously dominated by traditional financial platforms and centralised derivatives exchanges.
Against this backdrop, some analysts are already viewing the platform as a potential competitor not only to classic crypto exchanges, but also to prediction markets.
The Market Is Betting on New Crypto Narratives
Another growth factor for $HYPE is the launch of HIP-4 prediction markets linked to event forecasting. For now, this segment remains small, but the market sees potential in it amid the popularity of Polymarket and other prediction markets.
Investors are also attracted by the possibility of trading pre-IPO assets and tokenised shares through on-chain infrastructure.
All of this is forming a new narrative: the crypto market is gradually moving away from simple $BTC and $ETH trading towards a more complex financial ecosystem within blockchain.
Why BTC and ETH ETFs Are Losing Capital
At the same time, pressure on major crypto funds is intensifying. High interest rates in the United States, rising bond yields and caution around Federal Reserve policy are making investors less aggressive towards large cryptoassets.
Bitcoin and Ethereum ETFs are beginning to be perceived more as macro instruments closely linked to liquidity and interest rates.
Altcoins such as $HYPE are currently operating according to a different logic. There, the market reacts more to user growth, platform fees, the launch of new products and rapid revenue growth.
That is why capital now looks more like it is “hunting for growth stories” than simply buying the entire market as a whole.
What Comes Next?
For now, the capital rotation looks local, but the trend is becoming increasingly noticeable. Investors are starting to choose individual crypto sectors more actively instead of simply betting on $BTC and $ETH through ETFs.
If Hyperliquid continues to increase volumes, fees and its RWA derivatives segment, $HYPE could establish itself as one of the main new institutional assets of this cycle.
At the same time, however, the high speed of growth makes the market extremely sensitive to corrections. This is especially true if the broader crypto market once again faces a worsening macroeconomic environment or renewed pressure from Federal Reserve rates.
See also: "Deutsche Bank Platform Wants to Launch a Swedish Krona-Backed Stablecoin"
