Amid Bitcoin's sharp downturn, the HYPE ETF bucks the trend, attracting nearly $160 million, sparking a new wave of crypto frenzy on Wall Street

BlockBeats News, June 6th - Despite the recent downturn in Bitcoin and Ethereum, the ETF product tracking the Hyperliquid ecosystem token HYPE has attracted funds against the trend. The HYPE spot ETFs, BHYP by Bitwise and THYP by 21Shares, launched in May this year, have accumulated nearly $150 million in assets under management in the first few days of trading, with net inflows on most trading days. The newly launched Hyperliquid Staking ETF (HYPG) by Grayscale has currently reached $4.5 million in AUM.

Bitwise's Chief Investment Officer, Matt Hougan, stated that Hyperliquid's market penetration is only about 1% at present, with the majority of investors still unfamiliar with the project. Hyperliquid is a decentralized perpetual contract trading platform built on an independent blockchain, which rose rapidly during the U.S.-Iran conflict last year by providing a weekend crude oil trading channel, with daily trading volumes reaching around $1 billion.

Grayscale's Research Director, Zach Pandl, mentioned that the HYPE ETF is attracting more new investors who were not previously involved in the crypto market, rather than Bitcoin fund rotation. Analysts believe that Hyperliquid's biggest draw is its unique value capture mechanism - 99% of the platform's trading fees will be used to buy back the HYPE token, similar to stock buybacks by listed companies, establishing a direct link between platform activity and token value that is easier for traditional equity investors to understand.

As of now, the 21Shares Hyperliquid ETF manages $75.8 million in assets, while the Bitwise Hyperliquid ETF holds $71.14 million. Industry experts believe that spot ETFs are becoming a key bridge between traditional finance and DeFi, helping to increase the visibility of the Hyperliquid platform and drive mainstream adoption.

However, analysts also caution that Hyperliquid is still not directly usable in the United States, and regulatory approval may have to wait until 2027, while competition from traditional finance and DeFi platforms may continue to intensify.