Hyperliquid Surges Alone While Others Fall...ETF Trading Volume Jumps 50%

▲ Hyperliquid (HYPE), USA/AI-generated image

Hyperliquid (HYPE)-linked exchange-traded funds (ETFs) showed a surge in trading volume, overcoming initial sluggishness after their launch. The trading volume of two US-based HYPE ETFs increased by 50% on Wednesday, and it was noted that it is rare for new ETFs to boost trading volume immediately after launch.

Cointelgraph reported on May 21 (local time), citing SosoValue data, that the cumulative trading volume of the two HYPE ETFs launched by Bitwise and 21Shares reached approximately $41 million since their launch this month. The two products showed an increasing trend in trading volume after their debut, which was presented as different from the typical initial trading pattern of new ETFs.

Bloomberg ETF analyst Eric Balchunas stated in a Wednesday X (formerly Twitter) post that new ETFs often see reduced trading volume after receiving significant attention on the first day, or go unnoticed for several months, and that an increasing trend in trading during the first week is very rare. Regarding the background of the HYPE ETF's growth, he explained that the timing of its launch was perfect, citing that HYPE rose while stocks, bonds, gold, Bitcoin (BTC), and cryptocurrencies recently showed weakness.

HYPE's strong price also supported the increase in ETF trading volume. According to CoinGecko, HYPE has risen 120% this year, and recently recorded $56, up 18.5% in a single day. The article reported that traders are flocking to HYPE and the Hyperliquid platform, with some analysts seeing Hyperliquid as the next popular investment destination that has captured a large portion of the cryptocurrency perpetual futures market.

Compared to the trends of traditional financial assets and Bitcoin, HYPE's relative strength was prominent. Over the past year, the S&P 500 rose 8.6% and the Nasdaq 100 rose 16%, while Bitcoin fell 11%. Bitwise claimed a day earlier that HYPE was undervalued, describing Hyperliquid not as a mere cryptocurrency exchange but as a super app encompassing various asset classes.

By product, 21Shares first launched the 21Shares Hyperliquid ETF (THYP) in the US on May 12, and this product recorded a net inflow of $1.2 million. The Bitwise Hyperliquid ETF (BHYP) launched on May 14, starting with a net inflow of $750,000. On Wednesday, the two ETFs recorded a combined net inflow of $25.5 million, marking their largest single-day inflow since launch. $16.6 million flowed into the 21Shares ETF, and $8.8 million into the Bitwise ETF.

Grayscale also applied for a Hyperliquid ETF in March, and that product is currently under review by US regulators. Lookonchain stated on Wednesday that two wallets linked to Grayscale bought and staked $25 million worth of HYPE over the past week, but Cointelgraph reported that it is unknown whether this move is related to Grayscale's planned ETF.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*