HYPE ETFs See 50% Trading Volume Jump Amid Market Downturn
Quick Look
- US-based ETFs tracking HYPE saw a 50% trading volume increase on Wednesday, a rare phenomenon for new funds.
- Analysts attribute this growth to HYPE's outperformance against other assets and its strategic launch timing.
AI-generated summary
Why It Matters
US-based exchange-traded funds (ETFs) tied to HYPE have seen a substantial increase in trading volume. This is occurring at a time when many other assets, including stocks, bonds, gold, and Bitcoin, have been declining. Analysts note that such growth for newly debuted ETFs is rare, especially in the first week.
US-based exchange-traded funds tied to HYPE recorded a 50% trading volume jump on Wednesday, in a rare move for newly debuted ETFs, according to analysts.
Two Hyperliquid (HYPE) ETFs from issuers Bitwise and 21Shares have recorded nearly $41 million in total value traded since their launches earlier this month, with trading volumes increasing since their debuts, according to SoSoValue.
Bloomberg ETF analyst Eric Balchunas said in an X post Wednesday that such trading increases for ETFs are “very rare,” and many normally record 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.”
Balchunas pinned the ETFs’ growth on a “perfectly timed launch as EVERYTHING (stocks, bonds, gold, btc [Bitcoin], cryptos) is down lately except the HYPE.”
Source: Eric Balchunas
The Hyperliquid token has gained 120% so far this year and is up 18.5% in the past day to $56, according to CoinGecko. Traders have flocked to the token and the platform, with some analysts viewing it as the next trendy crypto play because it has captured a large portion of the crypto perpetual futures market.
Over the past year, the S&P 500 has gained 8.6%, while the tech-heavy Nasdaq 100 has gained 16%, while Bitcoin has fallen 11%.
It comes a day after Bitwise, one of two issuers of a US-based HYPE ETF, said traders had mispriced HYPE, arguing the platform is more than just a crypto exchange, but a “super-app” encompassing multiple asset classes.
Related: Hyperliquid eyes 55% price rise after Silicon Valley investor's 'massive HYPE buy'
21Shares was the first to launch a HYPE fund in the US, launching its 21Shares Hyperliquid ETF (THYP) on May 12 and drawing $1.2 million in net inflows, far below other altcoin ETF launches such as those for Solana staking.
The Bitwise Hyperliquid ETF (BHYP) debuted later that week on May 14 to $750,000 in net inflows,
The two ETFs recorded their highest day of net inflows Wednesday, with a combined $25.5 million in net inflows. The 21Shares ETF recorded $16.6 million, while Bitwise’s ETF recorded $8.8 million.
Crypto asset manager Grayscale also filed for a Hyperliquid ETF in March, with the planned fund currently being processed by US regulators.
The X account Lookonchain said on Wednesday that two wallets linked to Grayscale had purchased $25 million worth of HYPE over the past week and staked it, but it is not known if the move is tied to the company’s planned ETF.
Open Questions
- Will the trading volume and inflows for HYPE ETFs continue to grow?
- What is the long-term outlook for HYPE and its associated ETFs?
- Is Grayscale's planned HYPE ETF likely to be approved by US regulators?
- What specific factors are driving the 'super-app' perception of the Hyperliquid platform?
