Hyperliquid ETFs Suffer Heavy Outflows as Investor Sentiment Cools

The two US-listed ETFs tracking Hyperliquid's native token, BHYP and THYP, saw significant outflows last week. According to data, a total of $26.4 million flowed out of these funds between September 7-11, with Bitwise's BHYP accounting for $20.1 million of the losses.

This marks the latest in a string of losing weeks for the two ETFs, which have collectively shed $29.8 million over a 12-session stretch ending August 3. Despite this, their cumulative net inflows since inception still stand at roughly $330 million, with combined net assets sitting at $430 million.

The outflows can be attributed in part to the increasingly crowded altcoin ETF space, with competing products now available for Solana and XRP tokens. As a result, investor sentiment has cooled, leading to a decrease in demand for these funds.