Hyperliquid ETF Absorbs Over 1% of Market Cap in Ten Days...Money Moving Out of Bitcoin?

▲ Hyperliquid (HYPE)/ChatGPT generated image

The Hyperliquid (HYPE) spot ETF has instantly elevated the presence of the altcoin ETF market, surpassing Bitcoin and Ethereum spot ETFs in terms of initial capital absorption speed.

According to crypto media outlet Cointelegraph on May 27 (local time), Kairos Research stated that the Hyperliquid spot ETF absorbed funds equivalent to 1.04% of Hyperliquid's market capitalization during its first 10 trading days. Kairos Research compared the cumulative net inflow of new cryptocurrency spot ETF issuers to the market capitalization of the underlying asset at the time of its launch. By the same standard, the Bitcoin (BTC) spot ETF recorded 0.59%, the Ethereum (ETH) spot ETF recorded 0.41%, and the Solana (SOL) spot ETF recorded 0.31%.

Bloomberg ETF analyst Eric Balchunas stated that 21Shares' Hyperliquid ETF, THYP, rose by 50% within two weeks of its launch. Balchunas compared this by noting that Roundhill's DRAM ETF took five weeks to achieve a 50% increase, and BlackRock's Bitcoin spot ETF, IBIT, took two months for the same magnitude of increase.

Kairos Research's comparison does not mean that the Hyperliquid spot ETF raised more funds in absolute terms than Bitcoin or Ethereum spot ETFs. Kairos Research excluded outflows from GBTC and ETHE to remove the impact of existing trust redemptions and focused on demand from new issuers relative to the size of each asset market.

According to SoSoValue data, the Hyperliquid spot ETF recorded a net inflow of $6.89 million during its partial launch week from May 12 to May 15, and the net inflow increased to $68.02 million in the week ending May 22. This increase represents the top net inflow among altcoin-linked ETFs for the last full trading week surveyed.

During the same period, the flows for Bitcoin and Ethereum spot ETFs moved in the opposite direction. The Bitcoin spot ETF recorded net outflows of $1 billion in the week ending May 15 and $1.26 billion in the week ending May 22, totaling $2.26 billion over two weeks. The Ethereum spot ETF also recorded net outflows of $255.11 million and $215.99 million, respectively, during the same period. The XRP spot ETF recorded a net inflow of $22.04 million and the Solana spot ETF recorded $15.63 million in the week ending May 22, but these figures did not match Hyperliquid's.

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