Amid Bitcoin's sharp downturn, the HYPE ETF bucks the trend, attracting nearly $160 million, sparking a new wave of crypto frenzy on Wall Street

June 6 — Even as Bitcoin and Ethereum grapple with recent downturns, the ETF tracking Hyperliquid’s ecosystem token HYPE is drawing capital against the grain. The HYPE spot ETFs: Bitwise’s BHYP and 21Shares’ THYP, which launched in May, have amassed nearly $150 million in assets under management (AUM) in their early trading days, with net inflows on most sessions. Grayscale’s newly rolled out Hyperliquid Staking ETF (HYPG) currently holds $4.5 million in AUM. Bitwise Chief Investment Officer Matt Hougan pointed out Hyperliquid has just ~1% market penetration right now, leaving most investors unfamiliar with the project. Hyperliquid is a decentralized perpetual contract trading platform built on its own independent blockchain; it surged fast last year amid the U.S.-Iran conflict by offering weekend crude oil trading, hitting around $1 billion in daily volume. Grayscale Research Director Zach Pandl noted the HYPE ETF is bringing in new investors who weren’t previously active in crypto—not just money rotating away from Bitcoin funds. Analysts say Hyperliquid’s biggest draw is its unique value-capture mechanism: 99% of the platform’s trading fees go toward repurchasing HYPE tokens, similar to stock buybacks by public companies, creating a direct link between platform activity and token value that’s easier for traditional equity investors to grasp. As of now, 21Shares’ Hyperliquid ETF manages $75.8 million in assets, while Bitwise’s version holds $71.14 million. Industry experts view spot ETFs as a key bridge between traditional finance (TradFi) and decentralized finance (DeFi), boosting Hyperliquid’s visibility and driving mainstream adoption. That said, analysts caution Hyperliquid isn’t directly usable in the U.S., and regulatory approval may not come until 2027—with competition from both TradFi and DeFi platforms set to keep heating up.