Hyperliquid ETFs Surge to $502 Million, but Price Appreciation Drives Growth

Hyperliquid's spot ETFs saw significant growth in September, reaching $502 million in net assets as of September 25. However, this increase was largely driven by a price appreciation of HYPE tokens, which traded near $94 and came close to their all-time high on September 19.

The ETFs, including Bitwise's BHYP, Grayscale's HYPG, and 21Shares' THYP, hold about 2.5% of HYPE's market value. In contrast, U.S. spot Bitcoin ETFs typically hold around 6.3% of all Bitcoin.

A closer look at the data reveals that investor interest in the Hyperliquid ETFs waned after reaching a peak on September 4. Over the next two weeks, investors withdrew about $23 million from the funds, including a significant outflow of $5.3 million from BHYP on September 9.

On September 24, Binance listed HYPE with a high-risk Seed Tag due to its recent listing. Despite this, Hyperliquid Strategies purchased around $45.8 million worth of HYPE in just 16 hours that day, exceeding the total inflows for all three ETFs over the entire week.

Hyperliquid Strategies has been actively buying HYPE, purchasing approximately 5.5 million tokens worth around $476 million over the past month. This buying activity has become a significant driver of HYPE's price stability, with the company reinvesting 97% of its trading fees into buying back the token.