Regulated Exchanges Erode Hyperliquid ETF Momentum
The Hyperliquid ETFs (HYPE) saw their inflow momentum slow down in July and early August, according to a report from JPMorgan. The exchange-traded funds had been leading non-bitcoin crypto funds in terms of inflows compared to assets under management in May and June.
JPMorgan analysts attributed the slowdown to growing competition from regulated centralized exchanges, which are offering U.S.-regulated crypto perpetual futures products. This could lead to a loss of trading activity for offshore decentralized venues like Hyperliquid.
The introduction of these new offerings follows CFTC approval for Coinbase and Kalshi to offer perpetual cryptocurrency futures contracts to U.S. investors in June. Perpetual futures have become a dominant source of trading volume in global crypto markets, but had largely operated outside the United States until now.