Solana and Hyperliquid ETFs Draw in Fresh Capital Amid Market Turmoil

Solana and Hyperliquid exchange-traded funds (ETFs) have seen significant inflows, bringing in $904 million for Solana ETFs and $350 million for Hyperliquid ETFs since May. These investments come as spot Bitcoin ETFs shed around $8.2 billion over an eight-week period ending July 6.

Solana's inflows are seen as a sign of renewed confidence, with the coin down by about 60% over the past year. The upcoming Alpenglow overhaul, set to activate on the mainnet between August and October, is expected to significantly reduce transaction finality times from 12.8 seconds to 150 milliseconds.

Hyperliquid ETFs have a built-in value-accrual mechanism that mechanically buys its token, HYPE, off the open market using nearly all protocol network fees. This fund has already spent over $1.3 billion on buybacks that have burned 4.7% of the maximum supply.