Hyperliquid holds gains despite ETF outflows

• Hyperliquid's HYPE token remained near its all-time high despite more than US$6.5 billion leaving US spot Bitcoin ETFs since May.
• CoinShares said HYPE's buyback model and new exchange-traded funds have supported investor demand during a weaker cryptocurrency market.
• US-listed HYPE ETFs have attracted inflows every week since launching in May, reaching about US$336 million in assets under management.

Hyperliquid (CRYPTO:HYPE) continued trading near its all-time high despite sustained outflows from US spot Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) exchange-traded funds, with CoinShares attributing the resilience to the protocol's tokenomics and growing investor demand.

CoinShares said US spot Bitcoin ETFs have recorded eight consecutive weeks of net outflows, with more than US$6.5 billion leaving the funds since May, while Ethereum ETFs also experienced weaker flows over the same period.

“Against these tough market conditions, Hyperliquid (HYPE) continues to trade near its all-time high,” said CoinShares senior research associate Luke Nolan.

CoinShares said three US-listed HYPE exchange-traded funds have attracted inflows every week since launching in May, bringing assets under management to about US$336 million after attracting approximately US$161 million during June.

The firm said Hyperliquid's model of using 99% of platform fees to buy back HYPE has linked protocol activity with token demand, while no direct market reaction accompanied the research report.

The Bitwise Hyperliquid ETF, 21Shares Hyperliquid ETF and Grayscale Hyperliquid Staking ETF have expanded investor access to HYPE through traditional brokerage accounts as interest in the token has grown.

CoinShares said the long-term performance of Hyperliquid will depend on continued protocol activity, investor demand and whether recent ETF inflows persist alongside broader cryptocurrency market conditions.

At the time of reporting, Hyperliquid price was $68.20.