Bitcoin is cratering, but a new Wall Street crypto hype is on the rise
Wall Street investors are pouring money into Hyperliquid-related ETFs like BHYP, THYP, and HYPG, raising nearly $150 million despite Bitcoin’s decline, as the decentralized perpetual futures platform gains traction. The funds appeal to traditional investors by offering exposure to Hyperliquid’s fee-driven token buyback model, similar to stock buybacks, and simplifying access to decentralized finance (DeFi).
Investors are shifting focus to Hyperliquid, a decentralized perpetual futures exchange, as Bitcoin and other major cryptocurrencies face steep selloffs. Three Hyperliquid-linked exchange-traded funds (ETFs)—Bitwise’s BHYP, 21shares’ THYP, and Grayscale’s HYPG—have collectively attracted nearly $150 million since launching in May. Grayscale’s HYPG alone gathered $4.5 million in assets within days of its June 5 debut, while 21shares’ THYP and Bitwise’s BHYP hold $75.8 million and $71.14 million, respectively. Hyperliquid operates on its own blockchain and gained prominence last summer when traders sought weekend access to oil markets amid geopolitical tensions, reaching $1 billion in daily crude oil volume. The platform’s token, HYPE, benefits from a revenue model investors recognize: 99% of trading fees are used to buy back the token, mirroring corporate stock buybacks. This mechanism creates a direct link between platform activity and token value, making it more transparent than most crypto assets. The ETFs serve as a bridge for traditional finance investors, eliminating the need to manage digital wallets or navigate decentralized exchanges. Experts like Matt Hougan, Bitwise’s chief investment officer, argue Hyperliquid remains in early adoption, with only 1% market penetration. Zach Pandl of Grayscale notes the funds attract new investors outside crypto, drawn by the platform’s revenue-driven token economics. While Bitcoin ETFs like iShares’ IBIT lost 16% in a single week, Hyperliquid ETFs have seen consistent net inflows. Analysts suggest the trend reflects a broader shift toward niche crypto assets with clear utility, rather than a rotation from existing holdings. NovaDius’ Nate Geraci predicts the ETFs could accelerate Hyperliquid’s mainstream adoption as familiarity grows among institutional investors.
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