Hyperliquid's Spot ETFs Hit by Competition, Net Outflows Reach $30 Million
Hyperliquid's spot ETFs have taken a sharp turn from Wall Street darling to cautionary tale. Launched in mid-May, HYPE token's exchange-traded products initially pulled in $25.5 million on May 20, outperforming Bitcoin ETF debut sessions on a market-cap-adjusted basis. By June and July, cumulative net inflows had reached around $280 million.
However, the party didn't last. July marked the inflection point with over $13 million in net outflows reported for the month. This was followed by a $29.8 million net outflow streak across twelve consecutive sessions through August 3.
JPMorgan's analysis points to mounting competition from other altcoin ETFs as a key factor in the stalled flows. Products tied to Ethereum, Solana, and other tokens are competing for investor capital.