Hyperliquid ETF, $40 Million 'Cash Bomb' in 8 Trading Days...Whales 'Bet' 10x Long

▲ Hyperliquid (HYPE), crypto whale/AI generated image

As whale funds and Wall Street ETF competition simultaneously converged on Hyperliquid, the Hyperliquid (HYPE) market has emerged as a battleground where short-term speculative fervor and institutional demand clash.

According to cryptocurrency media outlet BeInCrypto on May 26 (local time), Bitwise's Hyperliquid ETF BHYP attracted $40 million in assets under management within 8 trading days after listing on the New York Stock Exchange. Bitwise CEO Hunter Horsley stated that BHYP's trading volume recorded approximately $12 million during the first 90 minutes after the market opened on Tuesday, and its assets under management reached $40 million just over a week after its launch.

Bitwise reported BHYP's assets under management of $30.5 million, net inflows of $26.9 million, and an average daily trading volume of $9.2 million after the first five trading days. Arkham reported that as of May 26, Bitwise ETF clients purchased a total of $35.9 million worth of HYPE last week. This is an 18-fold increase compared to the first week when Bitwise ETF fund flows began.

Lookonchain confirmed an additional purchase of 162,367 HYPE, worth approximately $10.11 million, over two hours, and stated that Bitwise's holdings reached 723,361 HYPE as of May 21. On the same day, wallet 0x3ed4 opened a 10x leveraged long position of 142,754 HYPE, with a notional value of approximately $9.1 million. The liquidation price for this position is $41.93.

HYPE surged to $64.44 during Tuesday's trading session before trading around $61.82, showing a 26% increase over the past 7 days. The same wallet had previously opened a 10x leveraged long position of 13,356 Zcash (ZEC), worth $8.24 million, the day before. This confirms a trend of whale funds expanding aggressive bets across highly volatile altcoins.

The HYPE spot ETF competition is also heating up rapidly. 21Shares listed its Hyperliquid spot ETF THYP on Nasdaq a few days before Bitwise's NYSE listing. Grayscale has applied for a HYPE ETF, and VanEck has confirmed plans for a HYPE ETF in the US and Europe. BHYP distinguishes itself with native staking through Bitwise Onchain Solutions, public fund wallet addresses, and a structure that uses 10% of its annual management fees to purchase HYPE. The purchased HYPE is held on the issuer's balance sheet for a minimum of 12 months.

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