JPMorgan Flags Pressure on Hyperliquid Amid Reversal of HYPE ETF Flows

JPMorgan analysts have flagged growing pressure on Hyperliquid, a platform offering continuous perpetual-futures trading and self-custody for various cryptocurrencies. The firm's concern stems from two structural tests that Hyperliquid will face in 2026: regulated perpetual futures and an increasingly crowded prediction-market sector.

The HYPE ETF attracted $293.93 million between May 15 and June 26, but demand weakened in July, with three consecutive weekly outflows removing a combined $30.62 million from the funds. Despite this reversal, the funds remained approximately $278 million net positive across completed periods.

JPMorgan analysts led by Nikolaos Panigirtzoglou linked weaker HYPE ETF flows to growing pressure on Hyperliquid as regulated exchanges expand into perpetual futures and competition intensifies in prediction markets.