Crypto ETFs Defy Headwinds with Resilient Demand and Rapid Growth

Crypto ETFs have shown resilience in the face of higher rates and legislative roadblocks. Despite the challenges, investor demand remains strong, with renewed ETF inflows suggesting that investors are still interested in crypto assets. Bitcoin prices have been back near $85,000, and bitcoin ETFs have been back on investors' radars.

One of the standout crypto assets this year has been Zcash, which has outperformed Bitcoin by a significant margin. Zcash has been in high demand, with the Grayscale Zcash Trust (ZCSH) reaching $1 billion in assets within a month of launching as an ETF. The fund has also seen significant net inflows, with around $306 million accumulated by September 25.

Another crypto asset that has been gaining momentum is Hyperliquid, with its HYPE token up roughly 250% year to date. The growth in Hyperliquid's decentralized perpetual futures platform has helped distinguish HYPE from other altcoins, linking demand for the token to activity on the underlying network. The 21Shares Hyperliquid Staking ETF (THYP), the Bitwise Hyperliquid ETF (BHYP), and the Grayscale Hyperliquid Staking ETF (HYPG) have all seen significant net inflows this year, with $350 million in total.

The crypto ETF market is expanding quickly, with around 50 new funds launched or converted to ETFs in the U.S. in 2026. However, this also means that the market is sorting through a rapidly expanding universe of ETFs, with around 22 crypto ETFs closing or announcing plans to liquidate.

Bitcoin miners are also pivoting to providing capacity for AI/high-performance computing (HPC), with companies like Core Scientific (CORZ) and Riot Platforms (RIOT) reallocating their infrastructure and power capacity toward high-density AI/HPC colocation. This shift could make former bitcoin mining plays less dependent on bitcoin prices while providing another way to gain exposure to growing AI power and data center demand.