CoinDesk
JPMorgan told clients on Thursday that inflows into Hyperliquid ETFs ground to a halt in July and early August, reversing the surge that had made HYPE funds the top non-bitcoin crypto ETF category in May and June. The bank attributed the slowdown to mounting competition from regulated US crypto derivatives platforms and an increasingly crowded prediction-markets sector.
Why it matters
The bank's note, led by analyst Nikolaos Panigirtzoglou, framed decentralized perpetual-futures venues as facing a structural squeeze rather than a cyclical cooldown. US-regulated perpetual-futures products rolling out this year can offer leveraged derivatives to institutional desks under clearer licensing, potentially rerouting flow from offshore DeFi venues like Hyperliquid that still carry open questions on licensing and investor protection.
Hyperliquid's expansion into prediction markets adds another dimension. It is now competing in a category where established players are scaling fast and product differentiation is thin, which JPMorgan's team flagged as an additional pressure point beyond the core perpetual-futures business that underpins much of HYPE's transaction-fee revenue.
Market impact
HYPE traded around $55.30 on Thursday, down more than 3% over the prior 24 hours. Despite the recent pause, Hyperliquid remains the fourth-largest asset held in corporate crypto treasuries, behind only Bitcoin and Ether, underscoring how much institutional and corporate appetite the protocol has already captured.
The broader ETF picture underscores the stakes. Bitcoin ETFs hold roughly $77 billion in assets under management and Ether products sit near $10 billion, while ETFs tied to Solana, XRP and Hyperliquid collectively account for just $2 billion to $3 billion. JPMorgan's analysts argued that thin slice is now facing the strongest competitive pressure since the altcoin-ETF cohort launched.
Frequently asked questions
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Why did JPMorgan say Hyperliquid ETF inflows stalled?
JPMorgan told clients inflows ground to a halt in July and early August after a May-June surge, blaming competition from regulated US derivatives platforms and crowded prediction markets.
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What competition is Hyperliquid facing from regulated venues?
US-regulated perpetual-futures products rolling out this year can offer leveraged derivatives to institutional desks under clearer licensing, potentially pulling volume from offshore DeFi venues like Hyperliquid.
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How is HYPE performing right now?
HYPE traded around $55.30 on Thursday, down more than 3% over the prior 24 hours, after JPMorgan framed the slowdown as structural rather than cyclical.
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Where does Hyperliquid rank in corporate crypto treasuries?
Hyperliquid remains the fourth-largest asset held in corporate crypto treasuries, behind only Bitcoin and Ether, despite the recent ETF inflow pause.
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How do BTC and ETH ETFs compare to Hyperliquid and altcoin ETFs?
Bitcoin ETFs hold roughly $77 billion in AUM and Ether products sit near $10 billion, while Solana, XRP and Hyperliquid ETFs combined account for just $2 billion to $3 billion.
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