Hyperliquid ETF Inflows Plummet as Competition Heats Up

The Hyperliquid ETF inflows have slowed down significantly in recent months, according to data from JPMorgan. In May and June, these single-protocol funds were dominating the crypto exchange-traded fund market, attracting a substantial amount of net new money. However, as more rival offerings entered the market, demand for Hyperliquid-linked ETFs began to stall out in July and August.

The data shows that the average daily inflow for Hyperliquid ETFs fell below $5 million in August, down from over $30 million in June. This sudden deceleration is notable not just for its speed but also for what it suggests about how institutional allocators are approaching the expanding menu of crypto wrappers.

The emergence of competing L1 tokens, DeFi aggregators, and multi-protocol baskets has fragmented demand and undercut the early advantage held by Hyperliquid ETFs. This phenomenon is reminiscent of the first wave of Bitcoin futures ETFs, where early-mover advantage faded as more sophisticated vehicles appeared.