Spot exchange-traded funds on Hyperliquid (HYPE) recorded their first weekly capital outflow since launch. Until now, funds had consistently flowed into these products for nine consecutive weeks, highlighting exceptional investor interest in this asset.
In the week ending July 17, $7.26 million was withdrawn from HYPE ETFs. This outflow ended an impressive streak of continuous inflows that had lasted over two months. The total net inflow decreased from $308.6 million to $301.34 million, while assets under management in the funds fell by 12.7% to $306.03 million.
Contrast against market leaders
Notably, the dynamics of HYPE ETFs sharply contrast with the situation for other leading digital assets. Bitcoin funds saw inflows for the second consecutive week, attracting $75.67 million. Ethereum posted even more impressive figures, with $105.44 million flowing into ETH ETFs over the same period — the largest weekly inflow since late April. Funds for XRP and Solana also showed positive dynamics, receiving $6.78 million and approximately $1 million, respectively. In total, these four instruments attracted over $188 million.
HYPE — the week's laggard among the top 10
The ETF outflow coincided with a very unfavorable period for Hyperliquid's native token. Over the past week, HYPE fell by more than 8%, making it the worst performer among all cryptocurrencies in the top 10 by market capitalization. The asset's price dropped below the $60 mark, though it later partially recovered to around $60.66 at the time of analysis.
HYPE sales occurred amid a broader correction in the altcoin market, but the token itself showed weaker dynamics than the global market, where the total cryptocurrency capitalization remained nearly unchanged over the reporting period. This indicates that investors perceive HYPE as a riskier asset even amid a broad market correction.
The return of investors to HYPE through exchange-traded funds now directly depends on the token's ability to hold its current support level. Fund flow data next week will be a key indicator: whether this was a one-time outflow or the beginning of capital rotation from HYPE into other, more liquid digital assets.
My analysis: The nine-week inflow was anomalously strong for an asset that many institutions are only beginning to evaluate. The current outflow is most likely profit-taking after a rally, rather than a structural trend reversal. However, if HYPE cannot quickly recover above $65, pressure on the funds could intensify, and we may see a deeper correction.