Will Hyperliquid Become the Leader of Next-Gen Altcoin ETFs?

▲ Hyperliquid (HYPE)/AI-generated image ©

The Hyperliquid (HYPE) ETF is emerging as a new altcoin theme on Wall Street, having overcome initial concerns of sluggishness and showing a surge in trading volume. An unusual trend of trading volume increasing by 50% in the first week of listing has quickly expanded market interest.

According to investment media FXStreet on May 21 (local time), the US-based Hyperliquid ETFs launched by Bitwise and 21Shares have recorded a total trading volume of approximately $41 million since their launch this month. According to SoSoValue data, trading volume for both ETFs has continuously increased since their listing, with Wednesday's daily trading volume surging by about 50% compared to the previous day.

Bloomberg ETF analyst Eric Balchunas commented, “Most new ETFs peak in trading volume on the first day and then sharply decline, so it's very rare for trading volume to continue increasing in the first week of launch.” He analyzed that the ETF's growth is due to HYPE maintaining a strong upward trend even as most assets, including stocks, bonds, gold, and Bitcoin (BTC), have been weak recently.

The price of HYPE has risen by approximately 120% this year, and recently surged by about 18.5% in the last 24 hours, reaching around $56. The media reported that Hyperliquid is rapidly expanding its market share in the cryptocurrency perpetual futures market, emerging as a new key trading platform among investors. Some market participants are evaluating Hyperliquid as the next popular cryptocurrency investment.

Bitwise recently stated in a report that “the market is mispricing the value of HYPE,” arguing that “Hyperliquid is not just a cryptocurrency exchange but a super-app integrating multiple asset classes.” Previously, 21Shares launched THYP, its first Hyperliquid ETF in the US market, on May 12, recording approximately $1.2 million in net inflows. Bitwise's BHYP ETF launched on May 14 with approximately $750,000 in net inflows.

Subsequently, the two ETFs recorded a total of $25.5 million in net inflows on Wednesday alone, marking the largest capital inflow since their launch. THYP attracted approximately $16.6 million, and BHYP attracted approximately $8.8 million. Meanwhile, Grayscale also submitted an application for a Hyperliquid ETF in March. Lookonchain recently reported that two Grayscale-related wallets bought and staked approximately $25 million worth of HYPE last week, but the media added that it has not been confirmed whether this is directly related to ETF preparations.

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