Can Hyperliquid’s ETF momentum outlast HYPE’s 9% price drop?

Spot Hyperliquid [HYPE] ETF has been making waves.

Grayscale’s recent analysis reveals that, on a market cap basis, HYPE ETF flows have been rising compared to Bitcoin [BTC], Ethereum [ETH], Solana [SOL], and XRP ETFs.

This highlights how smaller cryptocurrencies, despite attracting less capital overall, have a greater impact because those inflows account for a larger portion of their total market value. 

HYPE ETF vs. other ETFs

Bitcoin stands out for its consistency when compared to other cryptocurrencies, as BTC ETFs have drawn institutional demand for a long time since their launch. Even though there have been a few days or weeks of outflows, the general trend has been positive. 

In contrast, Ethereum has witnessed “dramatic spikes” instead of a steady accumulation. Meanwhile, inflows into ETFs for Solana and XRP are still in the early stages of growth.

Although both assets have drawn strong initial demand, neither has been as consistent as Bitcoin or as explosive in terms of inflows as Ethereum. This indicates that investors are becoming more open to diversifying into large-cap alternative cryptocurrencies in addition to Bitcoin and Ethereum. 

However, when market capitalization is considered, Hyperliquid is now showing up as the best performer. At comparable points in their ETF lifecycles, HYPE’s ETF has amassed capital more quickly than Bitcoin, Solana, and XRP in comparison to its size.

Since HYPE’s market capitalization is substantially lower than that of Bitcoin or Ethereum, even modest dollar inflows result in a substantially higher Inflow-to-Market Cap Ratio. 

HYPE price action and more

Hyperliquid’s ETF growth continued even as HYPE traded at $54.74 at press time, down 9.22% over the previous day.

However, this drop may be due to short-term facts, such as Bitwise recently reducing its HYPE holdings by selling another 117,917 HYPE tokens worth approximately $7.05 million.

Moreover, if looked at from a broader lens, the price of the HYPE token has risen from $38 to $54 since the launch of its Spot ETF in May 2026. Simply put, ETFs have played a major role in driving up the price of the altcoin. 

At the same time, AMBCrypto reported that Hyperliquid recently burned 20.64K HYPE, which was worth $1.2 million, and generated $1.4 million in fees. Yet, the amount of capital deployed has drastically decreased, falling 61% despite the buybacks and burns.

Final Summary

• Despite fewer inflows, HYPE ETF is attracting investors eyes against Bitcoin and other altcoin ETFs.
• ETFs have also been the reason behind HYPE seeing its price surge from $38 to $54.