- Cumulative inflows for three new Hyperliquid ETFs reached nearly $172 million in roughly a month, defying a $5.6 billion outflow from Bitcoin ETFs.
- The protocol’s HIP-3 framework facilitated a SpaceX perpetual contract that drew $1.4 billion in volume in a single session.
- Institutional buyers are treating HYPE like a high-growth tech equity, focusing on its fee-generating protocol revenue.
The native token for the Hyperliquid protocol, HYPE, surged over 73% in the past month to hit a new all-time high of $75.96 Tuesday morning, as institutional fund flows tell a similarly bullish story. Three new Hyperliquid ETFs have pulled in almost $172 million in net inflows since their May debut, while Bitcoin ETFs have shed almost $5.6 billion over the same period.
This stark divergence highlights growing institutional appetite for the protocol’s real fee-generating architecture. Bitwise’s BHYP leads the HYPE ETF race with roughly $107 million in cumulative net inflows, followed by 21Shares’ THYP with $60 million and Grayscale’s HYPG with $8.6 million.
Unlike macro-driven Bitcoin ETFs, HYPE ETF inflows reflect conviction in a protocol generating measurable fees, BTSE COO Jeff Mei told Decrypt. “HYPE’s resilience indicates that the market is beginning to price in protocol fundamentals,” Mei said.
This shift is also tied to Hyperliquid’s diversification into revenue streams beyond crypto, including equities and pre-IPO markets. The platform’s permissionless HIP-3 framework recently enabled a SpaceX perpetual that attracted roughly $1.4 billion in volume in one session, according to data from hl.eco.
Two structural features are reinforcing the institutional thesis. First, the protocol’s core Assistance Fund automatically routes most trading fees into HYPE token buybacks. Second, a Coinbase-managed stablecoin program lets $5 billion USDC earn yield, with 90% of that yield redirected to the buyback fund.
“Investors can actually see the protocol capturing market share and generating meaningful fees,” Ju.com CEO Sammi Li told Decrypt. She added that volatile markets often create more trading opportunities that drive protocol revenues.
For now, the fundamentals favor Hyperliquid as its ETFs attract capital while Bitcoin products bleed. Options markets imply a 10-15% chance HYPE reaches $100 by July’s end, as noted by on-chain options platform Derive’s co-founder.
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