Investors withdraw capital from HYPE-ETF for the first time: 9-week inflow streak broken
Spot exchange-traded funds on Hyperliquid (HYPE) recorded their first capital outflow since the products launched. In the week ending July 17, $7.26 million was withdrawn from the funds, ending a nine-week streak of continuous inflows.
This is the first warning signal for HYPE. Since May, investors had been steadily increasing their positions, but now the trend is broken. The total net inflow decreased from $308.6 million to $301.34 million, and assets under management (AUM) fell by 12.7% over the week, dropping to $306.03 million.
Notably, against this backdrop, the largest cryptocurrency funds are showing the opposite trend. Bitcoin ETFs attracted capital for the second consecutive week after eight weeks of outflows, receiving $75.67 million during the reporting period. Ethereum funds posted their best weekly result since late April, adding $105.44 million. Products on XRP and Solana attracted $6.78 million and about $1 million, respectively. In total, alternative funds received over $188 million.
HYPE — an outsider among the top 10 altcoins
The ETF outflow coincided with a sharp drop in the price of Hyperliquid's native token. Over the week, HYPE fell by more than 8% — the worst performance among the top 10 cryptocurrencies by market capitalization. The asset's price dropped below $60, before partially recovering to $60.66.
HYPE sales occurred amid a broader correction in the altcoin market, but the asset showed weaker dynamics than the global market: the total cryptocurrency capitalization remained virtually unchanged over the reporting period. This points to localized pressure specifically on HYPE.
Analyst's opinion: The first outflow from HYPE-ETF is an important signal, but not a reason for panic. The key question is whether the token can hold its current support level around $60. If next week shows continued outflows, this could mark the beginning of capital rotation from HYPE into more liquid assets. For now, we are seeing a one-off correction amid a general cooling of interest in altcoins.