CoinDesk
Bitcoin and ether ETFs shed more than $1 billion and $215 million respectively last week, the sharpest institutional pullback in months, according to data source SoSoValue. The simultaneous exit from the two largest crypto benchmark products signals a clear cooling in appetite for broad large-cap exposure.
But the redemptions were not uniform across the fund complex. Spot products tied to Hyperliquid's HYPE token — issued by Bitwise and 21Shares — attracted a combined $72.38 million in their first week of trading. XRP ETFs pulled in $22 million and SOL products another $15.6 million, suggesting that capital is being redeployed with precision into select altcoin narratives rather than leaving the asset class altogether.
Why it matters
"The broader message: capital has not left crypto uniformly. It is rotating toward newer narratives and away from crowded large-cap exposure," Timothy Misir, head of research at BRN, said in an email. The rotation coincides with the launch of HIP-3 and HIP-4 on Hyperliquid — markets for perpetuals tied to oil, gold, U.S. equity indexes and prediction contracts — which are positioning the platform as a structural challenger to traditional exchanges.
Hyperliquid generated $13.2 million in fees over the past seven days, the fifth-largest tally across DeFi, trailing only stablecoin issuers Tether and Circle and launchpad Pump, according to DeFiLlama. A recent agreement to integrate Circle's USDC as a quote asset is expected to push revenue higher still.
Market impact
The HYPE token has surged 59% this month, jumping from $38 to $63 in just ten days — a staggering outperformance against bitcoin's roughly 1% monthly gain. Data tracker Artemis reported HIP-3 RWA perp markets hit 2.6 billion in weekly open interest, with HIP-4 outcome markets following on more modest volume. The platform's pivot into equity perpetuals, pre-IPO trading and prediction markets is still in the very early innings, but the fund-flow data suggests institutional allocators are already front-running that narrative through the new ETF wrappers.
Frequently asked questions
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How much did bitcoin and ether ETFs lose last week?
Bitcoin ETFs shed more than $1 billion and ether ETFs lost another $215 million, the sharpest institutional pullback in months according to data source SoSoValue.
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Which altcoin ETFs attracted inflows while BTC and ETH bled?
Spot HYPE products from Bitwise and 21Shares attracted a combined $72.38 million in their first week. XRP ETFs pulled in $22 million and SOL products another $15.6 million.
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Why are investors rotating into HYPE rather than exiting crypto?
Timothy Misir, head of research at BRN, said capital is not leaving crypto uniformly but rotating toward newer narratives — specifically Hyperliquid's HIP-3 and HIP-4 markets for perpetuals, prediction contracts and real-world-asset trading.
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How much has the HYPE token rallied?
HYPE has surged 59% this month, jumping from $38 to $63 in ten days, versus bitcoin's roughly 1% monthly gain according to CoinDesk data.
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What is Hyperliquid's revenue and fee position?
Hyperliquid generated $13.2 million in fees over the past seven days, the fifth-largest tally across DeFi according to DeFiLlama, trailing only Tether, Circle and Pump.
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