Hyperliquid ETFs from Bitwise and 21Shares saw a 50% volume rise, boosting HYPE token toward $60. Spot ETF demand outpaced platform support, while short squeezes and institutional inflows added momentum. HYPE is up 120% YTD, with expansion into equities and commodities expected to grow overall demand.
Hyperliquid ETFs have seen notable early interest, signaling a potential new source of demand for the HYPE token. The launch comes amid a broader market slowdown where traditional assets and major cryptocurrencies have been under pressure.
Trading Volumes Surge for HYPE ETFs
US-based ETFs tied to Hyperliquid (HYPE) recorded a 50% increase in trading volume on Wednesday, following their recent launches. According to SoSoValue, the two ETFs, issued by Bitwise and 21Shares, have traded nearly $41 million in total value since debuting earlier this month.
Analysts described such growth as uncommon for newly launched ETFs. Bloomberg analyst Eric Balchunas said, “very rare … normally record a big splash [on] day one then drop off OR oblivion for months until [people] notice it. Rare to build in first week like this.”
21Shares launched its Hyperliquid ETF (THYP) on May 12, drawing $1.2 million in net inflows, while Bitwise’s ETF (BHYP) debuted on May 14 with $750,000 in inflows.
Both ETFs recorded peak net inflows on Wednesday, totaling $25.5 million combined, with 21Shares accounting for $16.6 million and Bitwise $8.8 million. The rising activity indicates strong early market participation.
HYPE Token Performance and Spot ETF Demand
The HYPE token has gained 120% so far this year, rising 20% in the past 24 hours to $58, according to CoinGecko.
Data from CryptoQuant indicates that HYPE Spot ETF purchases have outpaced the platform’s Assistance Fund buy-and-burn activity by roughly 2.5 times during the first six sessions.
Market watchers noted that ETF flows were “outpacing early support buying,” suggesting that new ETF demand is contributing meaningfully to HYPE’s price movement.
Futures market data shows a “taker buy dominant” environment over 90 days, indicating that aggressive buyers are actively participating. Despite the surge, the Futures Volume Bubble Map reported a “cooling” status, suggesting that activity has not reached overheated levels. This balance points to healthy spot and futures market engagement.
Institutional Interest and Market Outlook
In addition, short squeezes also played a role in the recent HYPE rally. Santiment reported negative funding rates on May 18 and 19 signaling a buildup of short positions. As prices rose, short sellers covered positions pushing the token past $50 and driving open interest to $1.92 billion. Institutional participation following the ETF launches added liquidity and supported the price increase.
Bitwise Chief Investment Officer Matt Hougan stated that HYPE is “the best-performing large-cap crypto asset of 2026, up 77% YTD” but “still undervalued.”
Hougan emphasized that Hyperliquid is expanding beyond crypto into equities, pre-IPO stocks, commodities, and prediction markets and noted that “the market is valuing Hyperliquid as a perpetual crypto futures exchange that happens to be growing quickly. But it should be valued as a global super-app covering all assets.”
He added that 99% of trading fees generated on the platform are used to buy back HYPE tokens, creating a direct link between trading activity and token value.
Overall, early ETF activity, spot market demand, and institutional inflows are combining to create a new layer of market support for HYPE. Traders will continue to monitor inflows and futures positioning to gauge whether momentum can persist beyond the initial launch period.
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