Hyperliquid ETF Inflows Slow Down Amid Market Share Pressure
Morgan Stanley says the inflow of funds into Hyperliquid ETF has slowed down significantly in July and August, following a brief surge in May and June. The fund was initially leading non-bitcoin cryptocurrency funds in terms of investment, but market concerns about its competitiveness are now rising.
According to Nikolaos Panigirtzoglou's analysis team, decentralized platforms like Hyperliquid are facing substantial market share pressure due to the launch of regulated crypto futures products in the US. This could potentially shift some trading activities from overseas decentralized platforms to centralized exchanges with better licenses and investor protection.
Morgan Stanley also notes that Hyperliquid is expanding its predictive market business, but competition in this area is increasing as well. Despite being the fourth-largest asset in corporate cryptocurrency funds after BTC, ETH, and SOL, it remains uncertain whether HYPE can continue to gain market share from Solana, XRP, and other larger ecosystems.
Currently, the combined assets under management of non-btc ETFs, including SOL, XRP, and HYPE, are around $2-3 billion, while BTC and ETH ETFs have around $77 billion and $10 billion in assets respectively.