Crypto investment flows are increasingly splitting, with money leaving bitcoin and ether ETFs while shifting toward alternative assets like Hyperliquid’s HYPE and XRP.
Bitcoin ETFs experienced more than $1 billion in outflows last week, highlighting a continued pullback from institutional investors. Ether funds also saw notable redemptions, losing another $215 million, according to SoSoValue. The persistent outflows from the two largest cryptocurrencies suggest declining demand for broad, index-style exposure.
However, capital is not exiting the crypto market entirely—it is being reallocated.
Funds linked to Hyperliquid’s HYPE token, issued by Bitwise and 21Shares, attracted $72.38 million in combined inflows, pointing to a more targeted investment approach. XRP and Solana ETFs also posted gains, bringing in $22 million and $15.6 million, respectively.
According to Timothy Misir, head of research at BRN, the trend reflects a rotation of capital into emerging narratives while investors move away from crowded large-cap positions.
This shift is also visible in price performance. HYPE has surged from $38 to $63 in just 10 days and is up 59% over the past month, far outpacing bitcoin’s modest 1% increase during the same period.
Meanwhile, the Hyperliquid platform continues to gain momentum. It generated $13.2 million in fees over the past week, ranking fifth overall behind major players such as Tether, Circle, and Pump. Canton Network ranked fourth, although much of its activity was driven by incentives, according to DeFiLlama.
Further growth could come from Hyperliquid’s recent partnership with Coinbase and Circle, which will integrate USDC as a quote asset—an addition expected to boost liquidity and trading activity.
Market participants are increasingly viewing Hyperliquid as a rising competitor to traditional trading platforms and prediction markets. Since the escalation of the Iran conflict in late February, its HIP-3 market has handled significant volumes in perpetual futures tied to real-world assets, including oil, gold, and U.S. equity indexes.
Data from Artemis indicates that Hyperliquid’s fundamentals are strengthening, with HIP-3 markets reaching a record $2.6 billion in open interest across RWA perpetuals. Its newer HIP-4 outcome markets, launched recently, are still in early growth phases.
Artemis noted that sectors such as equity perpetuals, pre-IPO markets, and prediction platforms remain in their early stages, positioning Hyperliquid to benefit as these segments expand.
